While I digest, here is the pdf.

A daunting task for sure, however, I really wonder … will 8% be sufficient to sort the men from the boys? We shall see next year.

“Capital thresholds will be set as a benchmark for the outcomes of the exercise. The capital benchmark will be set at 8% Common Equity Tier 1. The capital definition of 1 January 2014 will apply for the asset quality review, whereas the definition that is valid at the end of the horizon will be used for the stress test. The threshold can be decomposed into a Common Equity Tier 1 ratio of 4.5%, and in addition, the 2.5% capital conservation buffer. An add-on of 1% will be requested to take into account the systemic relevance of the banks considered significant under the SSM Regulation.

This total Common Equity Tier 1 ratio of 8% will constitute the minimum capital requirement for all of the banks covered by the comprehensive assessment. It is calculated as a ratio to risk-weighted assets, derived from the asset quality review including any necessary adjustment to the risk weights. In this context, the leverage ratio will provide supplementary information for assessing the outcomes. The relevant modalities and parameters for the stress scenarios will be defined and communicated at a later stage, following analyses conducted jointly by the ECB and the EBA.”

Further, a bit of Draghi, it seems:

“It is essential to ensure that any banks that have viable business models, but are required to build additional capital for prudential reasons, will be able to obtain such additional resources within an appropriate time frame. Capital shortfalls identified for viable banks should, first and foremost, be made up with private sources of capital. If private sources of capital are insufficient or not readily available, public backstops might need to be drawn upon, in compliance with national practices and European rules, with the overriding goal of ensuring financial stability. As concluded by the European Council in June this year, “…Member States taking part in the SSM will make all appropriate arrangements, including the establishment of national backstops, ahead of the completion of this exercise.”