Bloomberg have seen a draft document from the ECB on the upcoming AQR and stress tests taht says the ECB are planning to limit the AQR data that will be used in the stress tests and instead use a materiality threshold instead.
They will also be working very hard to limit the risk of any leaks of results that may upset the market.
The AQR and stress tests are going to be the next big risk event for Europe. If the BES situation wasn’t warning enough then it should reinforce the risk that there will be plenty of bank problems highlighted.
