ECB to keep options open for banks that fall short at stress test

The European Central Bank will decide “on a case-by-case basis” whether to demand that more capital is set aside by banks that come up short under stress in this year’s health check, its top supervisor said on Thursday.

“With regard to shortfalls in the adverse scenario, we will decide on a case-by-case basis,” Daniele Nouy said at an event in Greece. “Capital shortfalls in the baseline scenario need to be covered in any case.”

“So for banks across the euro area, the stress test will be a moment of truth, no doubt about that.”
Source: Reuters (Reporting By Francesco Canepa)