European bank stress tests will wait for SSM asset quality review in 2014

looking up into the clouds between buildings in the City of London

The European Banking Authority (EBA) today revealed that it will delay its European Union (EU) stress testing exercise until 2014, allowing time for national supervisors to complete reviews of bank asset quality and for the single supervisory mechanism (SSM) to be introduced.

The EBA said "appropriately reviewed balance sheets" are a "key input" of stress tests, which was a factor behind the decision to wait until next year. Some national supervisors have already begun assessing the quality of

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