Are the EU bank capital shortfalls really that bad?
Shortly after the publication of the 2016 EBA stress test results, Viral Acharya, Diane Pierret, and Sascha Steffen (APS) presented a paper that identifies capital shortfalls that are significantly larger than EBA's shortfall calculations reveal.
Reuters quickly picked up the highlight of the paper: "Using the Fed's approach, the 51 European banks showe…
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