Investors should have the facts they need to properly price assets and be assured that banks are sufficiently capitalised. The exercise aims to achieve this through a supervisory risk assessment, an asset quality review and a stress test. I will not go into the details here as they are being communicated separately, but the key point is that it will be comprehensive and consistent.
Comprehensive because it will cover 128 banks and about 85% of the assets of countries participating in the SSM. And consistent because it will be centrally led with a rigorous common methodology – there will be no room for perceptions of national bias.