Who Needs More Time?

German Logo of the ECB.The ECB will be giving some of the largest European banks more time to collect data required for the Asset Quality Review, Reuters is reporting. Investors and depositors deserve to know who.

Data was originally due in mid-November. That time frame is now being pushed closer to month-end.

It is not like than banks didn’t know the request was coming, they’ve known since July. Nor is this the first ever stress test the banks have ever faced. You’d think that the top banks in Europe would have a process in place for this. Certainly, I would prefer to invest in, or deposit my money in, a bank with such a process.

(Side point: this is why using data standards such as XBRL internally makes sense. You are ready for these massive data requests and have technology in place.)

Ignore that parenthetical remark. The main issue here is this – Does the ECB exist to protect the banking system, or the investors and depositors in the banking system? I once heard a consultant say of his banking client, “They would rather pay the fine than collect the data requested, because the cost of collecting the data is more than the fine.” That is not acceptable. Sunshine is the best disinfectant.

Who needs more time?

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