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Article 33(4) of the Regulation on the Single Supervisory Mechanism (SSM Regulation(1)) requires the ECB to carry out a Comprehensive Assessment prior to the SSM assuming its supervisory responsibilities and duties for the significant Eurozone banks on 4 November 2014. The Comprehensive Assessment comprises two main quantitative pillars, namely the Asset Quality Review and the Stress Test.
The Asset Quality Review aimed to review the quality of banks’ assets, including the adequacy of asset and collateral valuation and related provisions as of 31 December 2013. The Stress Test examined the banks’ ability to withstand two hypothetical scenarios in 2014-2016. The two scenarios – the “baseline” scenario and the “adverse” scenario – are those published by the EBA on 29...
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