Michel Barnier on the EBA publication of key components of the common methodology for the 2014 EU-wide stress test
European Commission
Statement
Brussels, 29 Avril 2014
Statement by Michel Barnier on the EBA publication of key components of the common methodology for the 2014 EU-wide stress test
I welcome today's publication by the European Banking Authority (EBA) of the key components of the forthcoming 2014 EU-wide stress test. The EBA has delivered a robust stress test methodology and a tough adverse scenario. The purpose of the exercise is to identify any remaining vulnerabilities in the EU banking sector in order to make it more resilient and to provide a high level of transparency on EU banks' exposures.
This exercise is an integral part of policymakers' efforts to restore the viability of the European banking system so that it can play a strong part in contributing to EU economic growth. In combination with the in-depth Asset Quality Review (AQR) undertaken by EU banking supervisors including the European Central Bank (ECB) as single supervisor for the banking union, this 2014 comprehensive assessment will constitute the most intense scrutiny banks have ever faced in Europe. It should dispel any remaining doubts about the health of European banks and their capacity to finance the economy.
Should the Asset Quality Review and stress test reveal any continuing weaknesses, EU banking supervisors will be responsible for taking the necessary follow-up actions. In that context, I welcome the announcements made by the ECB earlier today ahead of the direct supervision of significant banks as from November this year .
During the whole process of banks health checks, the Commission is closely monitoring the work of the EBA and the respective competent supervisory authorities, including the ECB,, which will be conducive to the recovery of the European economy. I have full confidence in the robustness of this exercise and look forward to the final results in October 2014.
Contacts :
Chantal Hughes (+32 2 296 44 50)
Audrey Augier (+32 2 297 16 07)
Carmel Dunne (+32 2 299 88 94)
For the public: Europe Direct by phone 00 800 6 7 8 9 10 11 or by email