After EU Bank Stress Tests ECB Will Release the Data

The European Central Bank on Thursday laid out plans to publish an unprecedented trove of data on individual banks – ranging from measures of their leverage to a standard level of non-performing loans – when it completes a landmark review of their health in October.

The central bank, soon to become Europe’s most powerful banking supervisor, also said it will give banks just two weeks to come up with plans to deal with their shortfalls, though they will get some advance warning of major issues and will have between six and nine months to actually raise funds.

The ECB is reviewing the asset valuations of the euro zone’s 128 most important lenders and assessing their ability to withstand future crises. The results will be published in the second half of October, before the ECB takes on bank supervision on Nov. 4.

“The ECB has been very transparent in engaging with banks and aims to provide as many details as possible to markets and other participants on progress in the comprehensive assessment and what the end of the process will look like,” said Danièle Nouy, chair of the ECB’s supervisory board.

As well as publishing a template of the six pages of data it will give per bank, the ECB detailed milestones between now and the end of the tests, including plans to give banks “partial and preliminary” results in “September/October” while withholding the final results until “very close” to publication.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza