Interim Results on Capital shortfalls disclosed by the ECB comprehensive assessment: How much progress has been made by banks that were requested to take action?

On 26 October 2014, the ECB presented the results of its comprehensive assessment, stating that capital shortfalls were detected at 25 out of 130 participant banks, in total amounting to €25 billion. Each of the banks concerned had to explain to the ECB within two weeks after the public disclosure of the results how those shortfalls could be addressed within at maximum period of nine months.

The ECON committee of the European Parliament was interested to know how much progress has been made with mitigating actions since the public disclosure of the capital shortfalls. Given that the overall time frame for addressing the capital shortfalls has not yet fully elapsed, one can so far only present interim results on the progress made. On the request of the ECON committee Professor Sascha Steffen reviews the progress made and will present the final results by October 2015. The note presents some interim results.

ESO: Background information: EBA publishes 2014 EU-wide stress test results http://www.europeansources.info/record/eba-publishes-2014-eu-wide-stress-test-results/

European Parliament: Economic Governance Support Unit: Briefing, March 2015: Interim Results on Capital shortfalls disclosed by the ECB comprehensive assessment: How much progress has been made by banks that were requested to take action? http://www.europarl.europa.eu/RegData/etudes/BRIE/2015/542655/IPOL_BRIE(2015)542655_EN.pdf

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