One of the first items on the SSM’s task list was to follow up on the results of the 2014 comprehensive assessment. The comprehensive assessment helped us to identify problems on the balance sheets of the significant banks. One of the important outcomes was the scale of NPEs now classified using a harmonised definition.
As you are aware, some euro area banks still have high levels of NPEs on their balance sheets. In the euro area, the average ratio of NPEs for significant institutions stood at 7.1% at the end of 2015, which is high by international standards.