Editorial: Stressful testing

Author: | Published: 26 Aug 2014

The European Central Bank (ECB) has quite the job on its hands. Tasked with supervising the eurozone's largest 128 banks in November, the central bank needs to prove itself.

Firstly, it must show that October's round of asset quality review (AQRs) and subsequent stress tests are more credible than previous exercises, which many perceived to be too weak. The bank attempted that last month when it announced its manual for the process,...