This is because banks will be wary of the constraints placed on sovereign debt by the stress tests to which they are subject at the same time.
Therefore, should the procyclical impact of the AQR be significant, then monetary policy would be able to act – without hesitation and being reassured that the side effects of a liquidity injection that we have seen for the 2011–2012 operations would be minimised. So how would you assess whether the AQR was procyclical?