FRANKFURT (Reuters) - The European Central Bank will not let banks off the hook easily in its upcoming health checks, the head of the financial stability department said on Friday.
The ECB wants to unearth any risks hidden in balance sheets before supervision comes under its roof as part of a banking union designed to avoid a repeat of the euro debt crisis, which was exacerbated by massive bad property loans in countries such as Ireland and Spain.
It will go through the books of 128 large banks in the common currency area in the next months, conducting an asset-quality review.
"We are going to set the bar high. We want to have success," Ignazio Angeloni said in a panel discussion at the Goethe University Frankfurt.
When asked whether any banks would fail the test, he said he would not prejudge the results.
"To be rigorous means not precommitting on results," Angeloni said.
yahoo.com
The ECB wants to unearth any risks hidden in balance sheets before supervision comes under its roof as part of a banking union designed to avoid a repeat of the euro debt crisis, which was exacerbated by massive bad property loans in countries such as Ireland and Spain.
It will go through the books of 128 large banks in the common currency area in the next months, conducting an asset-quality review.
"We are going to set the bar high. We want to have success," Ignazio Angeloni said in a panel discussion at the Goethe University Frankfurt.
When asked whether any banks would fail the test, he said he would not prejudge the results.
"To be rigorous means not precommitting on results," Angeloni said.
yahoo.com
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