ECB to examine euro bank capital shortfalls in €3.72tn asset review

The European Central Bank says it will look for capital shortfalls in euro-area banks by examining more than €3.72tn in assets in on-site checks.

Releasing a 285-page manual for staff undertaking the asset quality review, the Frankfurt-based ECB said any adjustments to lenders’ capital ratios identified as necessary by the unprecedented balance-sheet probe will be determined during July.

While banks won’t have to revise their 2013 accounts, they may have to raise extra capital once the results are published in October following a stress test.