How Europe’s banking sector benefits from single supervision In just under six months, the ECB will take over direct supervision of 80% of banking assets. We started preparing for this half a year ago by conducting a comprehensive assessment of the euro area’s most important banks.
The basic premise is to obtain a precise picture of the health of the banks before we start the actual task of supervision. But the comprehensive assessment is more than just an accounting exercise. A number of investors are fearful that impaired loans and potential losses are lurking in the books of some banks – and being tolerated by national supervisors.