- ECB bank assessment is beginning of a new way
- Isn’t starting assessments from scratch
- Purpose of tests is to restore confidence
- Credit flows are still weak and subdued
- If banks have to fail then they have to fail
- Primary objective of tests is transparency
- Has no doubt backstops will be in place
- Threshold chosen in assessments are ambitious
- Says he’s sure that region governments will be ready to fill any capital holes that emerge from the tests
Speaking on BBG tv interview
Anyone else spot the flaw in his wonderful plan?
