A Reuters analysis of Q3 results of Europe’s 30 largest banks found that almost two-thirds of the 27 that report detailed quarterly figures said their balance sheets were less risky at the end of September than at the end of June.
But they have yet to take extra provisions against doubtful loans to show they have learnt all the lessons created by the financial crisis.
Next year’s Asset Quality Review (AQR) by the ECB will judge whether the banks have done enough to recognize and provide for losses on their loan books as of December 31, and is all part of making banks do their homework ahead of the ECB taking responsibility for regulation, so that the banks take responsibility for their non-performing loans.
Reuters has more here
