ECB comprehensive risk assessment: single …

ECB comprehensive risk assessment : single supervisory mechanism The European Central Bank (ECB) has released a paper setting out the approach to be taken for a comprehensive assessment of the health of the eurozone banking The assessment will cover 130 banks in 18 eurozone Member States representing 85% of euro-area bank assets. This assessment will be carried out prior to the ECB assuming its new supervisory role in November 2014, as part of the creation of the single supervisory mechanism (SSM) for eurozone banks. The comprehensive assessment will conclude in October 2014. The banks covered by the comprehensive assessment will be those that are directly supervised by the ECB. The SSM legislation gives the ECB the power to obtain all the necessary information from the national supervisors, referred to as national competent authorities (NCAs), to enable the comprehensive assessment to be made. The assessment will have three parts: A supervisory risk assessment An asset quality review A stress test The outcome from all three parts will influence the actions taken to address any revealed weaknesses.

Global Regulatory Network Executive Briefing 2 Approach The ECB will lead the exercise by setting out the detailed design and strategy and by monitoring its

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