We have directed these firms not just to address their stated policies and procedures, but to assess how they actually work in practice. At the same time, examiners from the banking agencies will be on-site to review individual loan files, evaluate controls over the selection and management of thirdparty service providers, and carefully test the assertions that the institutions make in their self-assessments.
They must have the economic capability and the political will to participate in monetary union on an enduring basis without excessive tensions. Demonstrating that the convergence criteria enshrined in the Maastricht Treaty have been met on a lasting basis is an important factor in the decision on the countries to be selected.