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Home BUSINESSECB to probe 3.7 trillion of eurozone bank assets
Wed, 12 Mar, 2014 12:00:33 AM
FTimes- Xinhua Report, March 12
Photo AFP – Lehtikuva
The European Central Bank (ECB) published its manual on the methodology for Phase 2 of the asset quality review (AQR) on Tuesday, saying the total amount of the portfolios selected for review will be 3.72 trillion euros (about 4.42 trillion U.S. dollars).
"Phase 2 follows the portfolio selection (Phase 1) and will run until August 2014," the ECB said in a statement, and an average of 1,250 credit files will be reviewed per bank.
The AQR is a key component of the comprehensive assessment, which aims to enhance the transparency of the balance sheets of 128 significant banks, and rebuild investor confidence prior to the ECB taking over its supervisory tasks in November 2014, said the ECB.
The asset quality review will be followed by stress tests for eurozone banks in the summer with the results of both probes to be announced in October. Banks will then be told whether they need to raise fresh capital or take other measures to plug any holes in their balance sheets.
But ECB regulators have said that if their asset quality review unveils serious problems, banks could be required to take action before October.  
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