Brussels, 13/10/2014 (Agence Europe) - On Sunday 26 October, the European Banking Authority (EBA) will publish the 2014 results of the bank 'stress tests' , to coincide with the results of the asset quality review (AQR) carried out by the European Central Bank.
These results, which cover more than 12,000 data points per bank, will give an overview of the composition of own funds, risk-weighted assets (RWA), profits and losses, exposure to sovereign and credit risks and securitisation. For the first time, the Common Equity Tier (CET 1) ratios will be published for each bank, according to a press release published by the European Banking Authority (EBA), which welcomes the fact that this will provide an unrivalled level of transparency in the banking sector.
The European authority believes that the value of this 2014 exercise has less to do with a number of banks which will have to increase their capital to ride out a strong recession modelled during the 'stress tests' than with the process which started in 2013, whereby banks will already have consolidated their balance sheets by raising capital or making provisions for losses.
The publication of this European banking sector health check will coincide with the realisation of the 'supervision' plank of banking union, which will see the ECB take responsibility for the direct supervision of nearly 120 banking groups of systemic importance, with effect from 4 November. (MB)