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Results of the 2014 comprehensive assessment

The 2014 comprehensive assessment was a financial health check of 130 banks in the euro area (including Lithuania), covering approximately 82% of total bank assets.

It was carried out by the ECB together with the national supervisors between November 2013 and October 2014 and was an important step in preparing the Single Supervisory Mechanism to become fully operational.

In figures
No of banks covered 130 (including three Lithuanian banking groups)
Duration 12 months
Bank assets covered (%) Approx. 82%
No of national supervisors involved 26
No of people involved Approx. 6,000

The comprehensive assessment concluded with an aggregate disclosure of the overall outcomes as well as bank-level data, together with recommendations for supervisory measures.

Understanding the template with the results

Austria
BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG
Erste Group Bank AG
Raiffeisenlandesbank Niederösterreich-Wien AG
Raiffeisenlandesbank Oberösterreich AG
Raiffeisen Zentralbank Österreich AG
Österreichische Volksbanken-AG
Belgium Cyprus Estonia Finland France Germany
Aareal Bank AG
Deutsche Apotheker- und Ärztebank eG
Bayerische Landesbank
Commerzbank AG
Deutsche Bank AG
CA DISCLOSURE.xls CA DISCLOSURE.xls.pdf EBA Transparency.pdf
The data field Realized fines/litigation costs from 1 January to 30 September 2014 (net of provisions) in the final page of the EBA Transparency template for Deutsche Bank was corrected to align with the figure shown in the CA disclosure template, field C7: Incurred fines/litigation costs from January to September 2014 (net of provisions.
DekaBank Deutsche Girozentrale
DZ Bank AG Deutsche Zentral-Genossenschaftsbank
HASPA Finanzholding
HSH Nordbank AG
Münchener Hypothekenbank eG
Hypo Real Estate Holding AG
IKB Deutsche Industriebank AG
KfW IPEX-Bank GmbH
Landesbank Berlin Holding AG
Landesbank Baden-Württemberg
Landesbank Hessen-Thüringen Girozentrale
Landeskreditbank Baden-Württemberg-Förderbank
Landwirtschaftliche Rentenbank
Norddeutsche Landesbank-Girozentrale
NRW.Bank
SEB AG
Volkswagen Financial Services AG
WGZ Bank AG Westdeutsche Genossenschafts-Zentralbank
Wüstenrot Bausparkasse AG
Wüstenrot Bank AG Pfandbriefbank
Greece Ireland Italy
Banco Popolare - Società Cooperativa
Banca Popolare Dell'Emilia Romagna - Società Cooperativa
Banca Popolare Di Milano - Società Cooperativa A Responsabilità Limitata
Banca Popolare di Sondrio, Società Cooperativa per Azioni
Banca Popolare di Vicenza - Società Cooperativa per Azioni
Banca Carige S.P.A. - Cassa di Risparmio di Genova e Imperia
Credito Emiliano S.p.A.
Banca Piccolo Credito Valtellinese, Società Cooperativa
Iccrea Holding S.p.A
Intesa Sanpaolo S.p.A.
Mediobanca - Banca di Credito Finanziario S.p.A.
Banca Monte dei Paschi di Siena S.p.A.
Unione Di Banche Italiane Società Cooperativa Per Azioni
UniCredit S.p.A.
Veneto Banca S.C.P.A.
Latvia Lithuania Luxembourg
Banque et Caisse d'Epargne de l'Etat, Luxembourg
Clearstream Banking S.A.
Precision Capital S.A. (Holding of Banque Internationale à Luxembourg and KBL European Private Bankers S.A.)
RBC Investor Services Bank S.A.
State Street Bank Luxembourg S.A.
UBS (Luxembourg) S.A.
Malta Netherlands Portugal Slovakia Slovenia
Nova Kreditna Banka Maribor d.d.
Nova Ljubljanska banka d. d., Ljubljana
SID - Slovenska izvozna in razvojna banka, d.d., Ljubljana
Spain

What happens next?

The shortfalls identified in the Asset Quality Review or under the baseline stress test scenario have to be covered by the end of April 2015; those identified under the adverse stress test scenario by the end of July 2015.

The results are taken into account in day-to-day supervision by the ECB from November onwards. In particular, results are factored into the ongoing assessment of banks' risks, their governance arrangements and their capital and liquidity situation as part of the Supervisory Review and Evaluation Process (SREP).

Elements

The comprehensive assessment comprised two main pillars:

  • an asset quality review (AQR) – to enhance the transparency of bank exposures, including the adequacy of asset and collateral valuation and related provisions
  • a stress test – to test the resilience of banks’ balance sheets, performed in close cooperation with the European Banking Authority (EBA)
Join-up

The quality-assured stress test results were integrated with the AQR results in a process known as the “join-up”.

The join-up is what set the comprehensive assessment apart from any other previous European exercise. It connected and reinforced the point-in-time AQR and the forward-looking stress test, strengthening the overall exercise.

Full AQR results were incorporated into stress test results for all banks by adjusting the starting balance sheet positions.

Methodology

The comprehensive assessment was based on a capital benchmark of 8% Common Equity Tier 1, drawing on the definition of the Capital Requirements Directive IV/Capital Requirements Regulation, including transitional arrangements, for both the AQR and the baseline stress test scenario.

The stress test used both a baseline and an adverse scenario for testing banks’ resilience to stress. In the baseline scenario, the EU economy develops in line with the European Commission’s projections up to 2016; in the adverse scenario, macroeconomic developments clearly deteriorate.

The ECB collaborated closely with the EBA on the stress test methodology, and with the European Systemic Risk Board, which drew up the adverse scenario. The baseline scenario was drawn up by the European Commission.

EBA press release

Process

The comprehensive assessment was carried out by the ECB together with the national supervisors of the participating countries, and with the support of independent third parties.

The ECB was responsible for:

  • managing the exercise
  • planning the design and strategy
  • monitoring execution in close cooperation with the national supervisors
  • performing quality assurance on an ongoing basis
  • collecting, consolidating and publishing the results
  • finalising and disclosing the overall assessment

The national supervisors were responsible for the execution of the exercise in their respective countries, thereby making optimum use of local knowledge and expertise.

Quality assurance measures were put in place to ensure consistency across countries and banks.