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?