ECB lays out review process

• The publication of the 285-page manual marks the start of phase 2 of the ECB's review of EU banks which is expected to run until August. The exam will cover €3.72T, or 58% of the banking system's risk-weighted assets. On average, central bank supervisors will review 1,250 credit files per bank.
• The move is part of a process by the EU to harmonize banking practices across borders, break the (often-toxic) link between governments and their banks, and bring credibility back to the sector. Along with this review, the ECB is conducting stress tests for the largest banks.
• Yesterday: German lenders - including Deutsche Bank (NYSE:DB) - escape the need to revalue their mortgage portfolios.
• Also among those under review: SAN, BBVA, ING