Together they will allow a comprehensive view of banks’ balance sheets, bringing together quantitative and qualitative aspects of banks’ outstanding risk. Which risks? Risks already present, or ones that may emerge over time. The AQR should therefore be a rather static, point-in-time exercise according to rigorous standards on all aspects of asset quality and with an emphasis on the level of provisions.
In early February 2018 the EONIA administrator – the European Money Markets Institute (EMMI) – announced that it would no longer pursue a thorough review of the EONIA.4 The future use of the EONIA will hence depend on the willingness of both the panel banks and EMMI to support the continuity of the benchmark, as well as on the existence of viable alternatives.