The review of banks’ internal capital models by the European Central Bank’s (ECB) supervisory arm is the “second-largest project” in its history, its chair, Danièle Nouy told an audience in Vienna today (May 2).

The single supervision mechanism’s (SSM) targeted review of internal models, or Trim, is eclipsed in scale only by its comprehensive assessment of European banks in 2014, Nouy said. The review aims to ensure that the internal models used by Europe’s banks calculate risk in a reliable