Robustness, Validity and Significance of the ECB’s Asset Quality Review and Stress Test Exercise – Summary

The European Central Bank (ECB) is about to take on its new banking supervision tasks. In preparation for that the ECB carries out a financial health check of all banks to be supervised, consisting of an asset quality review and a stress test. Given the importance of those preparations, the Committee on Economic and Monetary Affairs has commissioned two experts to assess the "Robustness, Validity and Significance of the ECB’s Asset Quality Review and Stress Test Exercise" This note summarises the key findings of both papers.