2  BIS central bankers’ speeches  And until then? While the competences are still with the national authorities, a so-called “Comprehensive Balance Sheet Assessment” is done. Of course we do not want to buy a cat in the bag. At the moment, we still have all sorts of accounting differences, in valuations, in the treatment of non-performing loans, etc.
But we want balance sheets to be comparable, sound and repaired. The assessment takes place in three stages. First we determine, together with the national authorities, the riskiest portfolios per country and bank. Then we will thoroughly analyse the samples in a point-in-time analysis. That is the asset quality review.