Who is Afraid of the Asset Quality Review? Potential Losses and Capital Shortfalls in the European Banking System

Abstract

The rest of this paper is set up as follows. In section 2 we provide a brief description of the ECB's comprehensive assessment of the European banking system. In section 3 we describe the data we are using and provide some descriptive statistics, particularly regarding the changes between the years 2012 and 2013. Section 4 includes the scenarios and the results of our analysis. In section 5 we discuss the findings and the policy conclusions emerging from the analysis.