It will be conducted rigorously, guaranteeing absolutely equal treatment of all banks, which are now subject to highly heterogeneous supervisory systems and accounting practices. The definition of non-performing exposures used will be that recently adopted by the EBA, which is in line with the one used in Italy. Where data are lacking, estimates will be employed.
The analysis will cover all types of risk and be based on current prudential rules. The risks of highly opaque instruments will be assessed with special care. Account will be taken of the diversity of methods by which banks using internal rating models calculate risk-weighted assets.