ECB starts comprehensive assessment in advance of supervisory role

The European Central Bank announced in October 2013 details of the comprehensive assessment to be conducted in preparation of assuming full responsibility for supervision as part of the single supervisory mechanism. The list of banks subject to the assessment was also.

The assessment wasseen as an important step in the preparation of the single supervisory mechanism and, more generally, towards greater transparency of the banks’ balance sheets and consistency of supervisory practices in Europe.

The assessment would commence in November 2013 and would take 12 months to complete. It would be carried out in collaboration with the national competent authorities (NCAs) of the Member States that participatedin the single supervisory mechanism, and would be supported by independent third parties at all levels at the ECB and at the national competent authorities.

The exercise had three main goals: transparency – to enhance the quality of information available on the condition of banks; repair – to identify and implement necessary corrective actions, if and where needed; and confidence building – to assure all stakeholders that banks are fundamentally sound and trustworthy.

ESO: Background information: ECB: Banking Union starts with top lenders' health checks http://www.europeansources.info/record/ecb-banking-union-starts-with-top-lenders-health-checks/

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