Sunday 24 September 2017

ECB to disclose unprecedented data after bank stress tests

ECB chief Mario Draghi
ECB chief Mario Draghi
Laura Noonan

Laura Noonan

The European Central Bank laid out plans to publish an unprecedented trove of data on individual banks today.

This data will range 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.

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