ECB Homes In on Risky Assets as Inspectors Visit Banks
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The European Central Bank said it will look for capital shortfalls in euro-area banks by examining more than 3.72 trillion euros ($5.16 trillion) in assets in on-site checks.
Releasing a 285-page manual for staff undertaking the Asset Quality Review, the Frankfurt-based ECB said any adjustments to lenders’ capital ratios identified as necessary by the unprecedented balance-sheet probe will be determined during July. While banks won’t have to revise their 2013 accounts, they may have to raise extra capital once the results are published in October following a stress test.