More from Vitor Constancio speaking in Frankfurt
- Will conduct quality assurance for tests
- Scenarios will be given to banks end of April
- Tests may treat credit in dynamic way
- Will intergrate AQR results into tests, AQR will aggravate stress test results
- Banks have been deleveraging ahead of of ECB review
- Will disclose whatever found in asset review
- ECB won’t fudge outcome and won’t put reputation at risk in AQR
- Backstops are there and are enough
- Review will be very demanding and rigorous
As I pointed out earlier, what can go wrong?