The SSM in conducting the initial assessment of the banks’ situation will benefit from the fact that the ECB is well prepared to conduct these reviews and related assessments on individual banks, in cooperation with other national and EU authorities and possibly third parties. This is particularly the case for forward-looking analysis of banks’ solvency through the appropriate analytical tools.
The ECB, similarly to other national central banks, has over the years strengthened its analytical capacity to support its financial stability function, notably the activity of carrying out systemic risk assessments in real time to support policy discussions.