Don’t Be Distracted by the Pass Rate in ECB’s Bank Exams – Bloomberg.
For investors, the European Central Bank’s yearlong evaluation of the region’s banks isn’t just about who passes and who fails.
The bigger question will be how much the ECB marks down lenders’ capital during its balance sheet inspection known as the asset quality review. The central bank and national regulators will publish their findings on Oct. 26.
“The focus will be on how the asset quality review influences the development of capital ratios and non-performing loans,” said Michael Huenseler, who helps manage about 13 billion euros ($16.5 billion), including European banking shares and bonds, at Assenagon Asset Management SA in Munich.
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