Brussels, 12/09/2013 (Agence Europe) - At a Eurogroup meeting on Friday 13 September, the European Central Bank (ECB) will give details of its planned timeline for assessing the assets of the 130 big banks it will be directly supervising under the new eurozone bank supervision system.
A European source said he expected the ECB to give information about timing, but didn't think the assessments would be carried out before the summer holidays in 2014. The 130 big eurozone banks to become directly supervised by the ECB in the autumn of 2014 will need to prepare for the assessments, an exercise that will involve identifying staff and enlisting external assistance.
The source says that attention will focus on what exactly will happen once the outcome of this “asset quality review” has been published. If a bank needs to increase its capital, then it will need to do so initially from the financial markets or by amending its commercial model. If public cash proves to be necessary, then national bailout funds would be used first and the European Stability Mechanism (ESM) only as a last resort. (MB/transl.fl)