The 124 European banks that will be subjected to stress tests in view of the single supervision by the ECB "will have to raise capital in the short term” if they are ascertained inadequate requirements in a baseline scenario. The announcement was made today European Central Bank in an initial review of the preparatory work for the assessment of bank balance sheets (AssetQuality Review) and the stress tests.
In the event that capital parameters are inadequate in an “adverse” scenario, the capital requirements of credit institutions could be improved over a "longer period, on the basis of an agreed strengthening plan, provided that the minimum requirements are met", explains Eurotower.
Will 15 Italian banks which will be subjected to the stress test conducted by the EBA.
