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Image header Agence Europe
Europe Daily Bulletin No. 10848
Contents Publication in full By article 20 / 34
ECONOMY - FINANCE / (ae) banking

Bank supervisors must examine asset quality

Brussels, 17/5/2013 (Agence Europe) - The European Banking Authority (EBA) recommended on 16 May that bank supervisory bodies should examine the quality of the assets held by Europe's big banks, based on the guidelines it will be publishing at the end of the year. These asset quality reviews would amount to postponing the bank stress tests until 2014, but in a press release the EBA says that it will provide in the second half of 2013 “appropriate disclosure on the actual exposures of the EU banking sector. Andrea Enria, the head of the European Banking Authority, said: “Our recapitalisation recommendations have brought the common equity capital ratios of EU banks in line with those of major international competitors. However, concerns remain on asset quality and forbearance, which need to be addressed. This is also a necessary precondition for the credibility of the next EU-wide stress test.” The EBA is planning to adjust its methodology and timetable to the assessments carried out by the ECB, which will be given bank supervisory powers in March 2014. (EL/transl.fl)

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