The exercise comprised both the asset quality review, which harmonised the valuation standards and accounting practices, and the stress test, which measured the resilience of banks to adverse macro-financial shocks. Nearly two weeks ago, the results of the comprehensive assessment were published. Let me recall here some of the key findings.
The adverse scenario of the comprehensive assessment would lead to a capital reduction in the euro area banking sector by € billion, including a € billion shortfall for those banks that were found to be non-compliant with minimum capital requirements. The asset quality review found that euro area banks should increase their provisions and adjust the asset valuations by a total of € billion.