This is especially evident in the size of its market shares. The euro is the second most important international investment and reserve currency, after the dollar, and its market shares far exceed those of the yen. Around one-quarter of cross-border bank positions are denominated in euro.
This project, which is a kind of entrance examination for all significant credit institutions, includes an Asset Quality Review (AQR), Stress Test and Supervisory Risk Assessment. The AQR is a point-in-time examination of a bank’s assets and will result in the determination of provision adequacy and, as the case may be, identification of capital requirements.