Asset-quality review: special focus

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Euromoney investigates the market impact of the ECB’s comprehensive assessment of banks, which consists of three legs: identifying portfolios that need scrutiny; the asset-quality review (AQR); and a stress test to be completed by October 2014.


NPLs: Buyers in position for Europe’s deluge of distress
Mario Draghi, president of the ECB

March 2014
The sale of a jumbo pool of legacy Spanish real-estate loans written by Commerzbank unit Eurohypo is just the latest evidence that the long-awaited deleveraging of Europe’s banks is set to accelerate. But as demand and supply in this part of the market finally align, the careful timing of sales will be crucial to their success.

NPL disparities spell trouble for Spanish lenders
January 2014
Concerns for mid-tier banks as AQR looms; likely that additional provisioning needed.

Why the ECB asset-quality review will be no game-changer
December 2013
Everything you thought you knew about the ECB’s comprehensive assessment was wrong – it won’t reveal large holes in banks’ balance sheets.

Weber sees ECB stress test as a big uncertainty
December 2013
Banks still dependent on ECB funding; recent run-up in shares might have gone too far.

Eurozone banks’ NPL crisis threatens to derail recovery
November 2013
The IMF warns that corporate loan losses for banks in Spain, Italy and Portugal could hit €282 billion over next two years, highlighting the scale of the challenge for the ECB’s asset-quality review amid continued financial fragmentation.

ECB asset quality review is moment of truth
October 2013
Europe’s Tarp moment could be looming as ECB president Mario Draghi issues a sharp warning that the year-long review of the region’s banking system will be credible and might require public backstops. Many long-neglected issues are coming to a head, from accounting and bank-reporting norms to national regulatory conventions. However, there is no clarity yet on the hot-button questions.