The balance sheet assessment will be complemented by a stress test, in coordination with the European Banking Authority, that will cover all banks supervised directly by the ECB. We expect to conclude the comprehensive assessment when the SSM becomes operational.
It is crucial to have a commitment to ensure that effective backstops are available, in order to ensure that the assessment is duly and timely concluded. A second cornerstone of banking union is the Bank Recovery and Resolution Directive (BRRD). By providing the tools and powers in national laws, it will form a basis on which to build a single resolution mechanism (SRM).