It may do if we ever get it.

  • ECB will address differences in risk models
  • SSM will lead to harmonisation of NPL rules, will use simplified rules initially
  • Will ensure similar risks given same weights
  • Not surprised if SSM prompts bank restructuring
  • Efficiency gains in European banks could be made
  • ECB supervisor to use most advanced methods (reading the tea leaves is out)
  • ECB will focus on viability of business models
  • Expects EU to keep universal banking model
  • Need profitable stable banks in EU
  • Expects decline in size of euro area bank sector