TY  - UNPD
A1  - Steffen, Sascha
T1  - Robustness, validity, and significance of the ECB's asset quality review and stress test exercise
T2  - SAFE white paper series ; 23
N2  - As we are moving toward a eurozone banking union, the European Central Bank (ECB) is going to take over the regulatory oversight of 128 banks in November 2014. To that end, the ECB conducted a comprehensive assessment of these banks, which included an asset quality review (AQR) and a stress test. The fundamental question is how accurately will the financial condition of these banks have been assessed by the ECB when it commences its regulatory oversight? And, can the comprehensive assessment lead to a full repair of banks’ balance sheets so that the ECB takes over financially sound banks and is the necessary regulation in place to facilitate this? Overall, the evidence presented in this paper based on the design of the comprehensive assessment as well as own stress test exercises suggest that the ECB’s assessment might not comprehensively deal with the problems in the financial sector and risks may remain that will pose substantial threats to financial stability in the eurozone.
T3  - SAFE white paper series - 23 
KW  - Stress Test
KW  - Comprehensive Assessment
KW  - Asset Quality Review
KW  - European Central Bank
KW  - European Banking Authority, Single Supervisory Mechanism
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/35018
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-350188
UR  - http://safe-frankfurt.de/de/policy-center/publikationen/detailsview/publicationname/-af8c5944b7.html
N1  - This report was first published at the request of the Economic and Monetary Affairs Committee of the European Parliament, under the same title, on October 15, 2014.
IS  - 2 November 2014
PB  - SAFE
CY  - Frankfurt am Main
ER  -