(Finance) – The European Central Bank (ECB) has completed an asset quality review (AQR) of JP Morgan SEGerman subsidiary of US banking giantwhich was classified as significant and is therefore now directly supervised by the ECB.
Supervisors perform AQRs to review banks’ asset ratings from one prudential perspectiveincrease transparency around their exposures and assess the adequacy of their capital levels.
The AQR for JP Morgan SE focused on market and credit risk. AQR results show that JP Morgan SE “does not face a capital deficit“, since its Common Equity Tier (CET1) ratio does not fall below the 8% threshold maintained from previous years.
The starting point was a CET1 ratio of 19.10%, the impact of the AQR was -67 basis points, for a AQR adjusted CET1 ratio of 18.43%.