Page 68 - EBA 2015.1815 Annual report 2014 web 2

Basic HTML Version

E U R O P E A N B A N K I N G A U T H O R I T Y
66
pating banks had to undergo an AQR. This pro-
cess was recommended in 2013 by the EBA to
the competent authorities and the final results
of the stress test brought more clarity to the
supervisors, as well as more confidence to the
market participants. It was also a major advan-
tage for claiming comparability in the banks’
stress test results. For the EBA, the AQR was
a major step forward for its work on common
definitions and comparability, since the exer-
cise used the EBA’s harmonised definitions of
non-performing and forborne exposures.
For the Eurozone alone, it has been estimated
that in the AQR the use of harmonised defini-
tions of non-performing exposures, (instead of
the bank-specific definitions used by institu-
tions) to identify problem loans and debt secu-
rities, resulted in an increase in non-perform-
ing exposures by EUR 55 billion or 40 % of the
total increase in non-performing exposures.
For the stress test itself, the EBA developed
a common methodology and played an impor-
tant role in ensuring a comprehensive, consist-
ent, and comparable disclosure of the results.
Moreover, although the quality assurance of the
outcomes lay under the responsibility of com-
petent authorities, the EBA assisted by com-
piling and sharing with them sets of statistical
benchmarks as a tool to assess their banks’
results. Final responsibility of identifying and
implementing adequate supervisory actions to
address the vulnerabilities identified in the ex-
ercise were left to the NCAs .
In the context of data gathering, the EBA col-
lected and processed about 9.6 million data
points for 123 banks, while it disclosed up
to 12 000 data points for each bank involved.
That amounted to more than one million data
points published in aggregate, covering banks’
composition of capital, RWAs, profit and loss
(P&L), exposures to sovereigns, credit risk
and securitisation. In addition, the EBA acted
as a data hub for the dissemination of the re-
sults for the common stress test exercise and
provided to the public a wide number of inter-
active and user friendly tools to facilitate the
exploitation of the results.
Figure 20: Interactive tools for the 2014 EU-wide stress test