Initially, the ECB set promising expectations. It had identified a whopping 160 Options and Discretions, many of which were meant to be chopped. See this interview with a very confident Ignazio Angeloni some weeks ago.
But the end result feels disappointing. Danièle Nouy may feel dissatisfied. Her two pet projects: i) eradicating DTAs and ii) harmonising the definition of capital for banks and insurance companies are yet to be finished.
Below are some snapshots that highlight the outcomes:
On Deferred Tax Assets that do rely on future profitability (so not the DTA that don’t, see my post on Italian DTAs):
On DTCs, i.e. the out-of-whack DTA’s that don’t rely on future profitability, as expected:
On the deduction of insurance companies: