Reuters: Regulatory News: ECB's Draghi expects no disasters from bank health checks

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Thousands of Free eBooks BookBub brings you free & bargain national bestselling eBooks in the genres of your choice! Sign up now & join 1.5 million happy readers. From our sponsors

ECB's Draghi expects no disasters from bank health checks Oct 2nd 2013, 14:24 PARIS | Wed Oct 2, 2013 10:24am EDT PARIS Oct 2 (Reuters) - European Central Bank President Mario Draghi said on Wednesday he expected no disasters to come to light in forthcoming financial health checks on the region's banks, which would be rigorous. The ECB is scheduled to take over supervision of the banks in about a year, and a resolution mechanism to deal with problem lenders should follow in 2015. Before that, the central bank of the 17-member euro zone is to conduct an asset quality review, followed by stress tests, to ensure that banks enter common supervision in good health. Draghi said a backstop needed to be in place to handle potential fallout from the twin reviews, and added that details of the test procedure would be given later this month. "The whole exercise of the asset quality review and the balance sheet assessment and the stress tests make sense only if they are credible," Draghi said. "...I don't expect major disasters, but it's quite important that full light be shed and full transparency be there," he told a news conference after the ECB left interest rates unchanged. Asked about the state of the Spanish banking sector, Draghi said that the country had made good progress in fixing its banks after it applied for aid from its European partners. "Everything seems to suggest that Spain will approach this exercise well-equipped, but of course it is very difficult to guess what will happen with individual banks," he said. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions