Asset quality reviews

Asset quality reviews (AQRs) are aimed at clarifying the situation of banks that are, or will be, subject to the ECB’s direct supervision. They help the ECB to ensure that the banks under its supervision are adequately capitalised.

The methodology applied in an AQR is set out in the dedicated AQR – Phase 2 manual.

Each AQR concludes with the disclosure of bank-level data. Once the review has been completed, the Joint Supervisory Teams, which include supervisors from the ECB and national competent authorities, follow up with the bank to address the qualitative and quantitative findings of the AQR. If an AQR is performed in response to a request from an EU country outside of ECB Banking Supervision, that country’s national supervisor will follow up on the AQR findings.

The supervisors address all identified risks as part of their day-to-day supervision of banks. In particular, the results of AQRs are factored into the ongoing assessment of banks’ risks, governance and capital as part of the Supervisory Review and Evaluation Process.

Asset quality review - Phase 2 Manual FAQs on the revised asset quality review manual

The results of AQRs performed before 2023 can be found on our comprehensive assessments page.