“We will be intrusive in the model approvals, and this will be done differently than before,” Korbinian Ibel told a financial conference.
The ECB took over as the euro zone's leading financial regulator on Nov. 4 after completing sweeping balance sheet tests, which saw 13 banks fail and exposed a 9.5 billion euro (8 billion pound) capital hole.
But the ECB is also charged with regularly checking banks’ business models for viability, something that was not done consistently in all the euro zone states. The ECB has yet to offer details about how the business model checks will be conducted.
“We will also be intrusive in our risk analysis,” Ibel added. “We will try to find the risks and we will ask banks how they have prepared for them.”
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