ECB publishes bank resilience results: ECB has published the results of its study on the resilience and positions of the 130 largest banks in the euro area as of 31 December 2013. ECB carried out an asset quality review (AQR) and a forward-looking stress test of the banks. It found a capital shortfall of €25 billion at 25 banks, 12 of which have already covered their capital shortfall. ECB requires banks with shortfalls to prepare capital plans within two weeks and cover the shortfall within nine months. The AQR showed the need to adjust banks’ asset values by €48 billion, €37 billion of which did not generate any capital shortfall. ECB found the shortfall and asset value adjustment implies an overall impact of €62 billion on banks. It found a further €136 billion in non-performing exposures. A severe stress scenario would deplete the banks’ top-quality, loss-absorbing Common Equity Tier 1 (CET 1) capital by about €263 billion, resulting in the median CET1 ratio decreasing by four percentage points from 12.4% to 8.3%. ECB was pleased with the rigorous exercise and the response of the banks and says it is a good starting point for its role under the Single Supervisory Mechanism. (Source: ECB Publishes Bank Resilience Results)

ECB consults on supervisory financial information reporting: ECB is consulting on a draft Regulation on how banks will report supervisory financial information to their national supervisors and ECB once ECB takes on its responsibilities as supervisor for euro area banks in November 2014. There will be a public hearing on 13 November and consultation closes on 4 December. (Source: ECB Consults on Supervisory Financial Information Reporting)