ECB to give banks two weeks for capital plans

The European Central Bank (ECB) has fleshed out the details of plans for banks that fall foul of its comprehensive assessment of balance sheets ahead of a deadline on 26 October.

The Eurozone monetary authority, that takes over bank supervision in November, said individual bank results will distinguish between capital shortfalls identified in the asset quality review (AQR) and those identified under the baseline and adverse scenarios of the stress test.

Furthermore, the ECB will produce an aggregate report on the full outcome of the exercise for all banks simultaneously.

The European Banking Authority will issue the results of its EU-wide stress test on the same day.

“Following the publication of the results, banks will, where necessary, have two weeks to submit capital plans to the ECB, detailing how shortfalls will be covered,” the statement said.