ECB’s Review of Opaque Assets Seen Targeting Deutsche Bank, BNP

Deutsche Bank AG and BNP Paribas SA, which hold almost half of the hard-to-value assets on the books of the euro area’s 10 biggest banks, are facing a reality check that could impose losses.

As part of its review of 128 lenders, the European Central Bank is studying less-actively traded loans and securitized products that banks value with minimal external data. The unprecedented scope of the exercise gives the ECB, which is taking on a supervisory role this year, insight that has eluded investors: comparing how the biggest investment banks value complex assets.