He European Central Bank (ECB) announced his intention to Supervise most often the bank liquidity of the Eurozone with the objective of avoid future financial crisesas indicated Andrea Enriathe president of the Prudential Supervisory Boardthe body in charge of banking supervision within the monetary entity.
“We have decided to ask the banks that, from Septembersend us information weekly to have latest data and better follow the liquidity evolution”, Enria anticipated in statements cited by the France Presse and Bloomberg agencies.
Enria, however, pointed out that European banks will have good results in the stress tests that are being developed, with higher levels of capital and one better asset quality. Currently, liquidity data is sent monthly.
As he ECB in Europe as the Federal Reserve (FED) in USA promised this year to strengthen the control over banksafter the bankruptcy of various regional banks in USA last March, and the difficulties of Credit Suissewhich led to his forced sale to your competitor UBS.
In the special case of Europethe answer of ECB occurs after a recommendation made last month by European Banking Authority (EBA), regulator that sets industry standards. precisely, the ABE is jointly carrying out stress tests with the ECBa simulation-based exam that tests banks on hypothetical crisis scenarioswhose results will be known at the end of this month.
// ECB President Mario Draghi said uncertainty about the inflation outlook in the euro zone continues to recede.
Contrary to USAhe ECB it does not carry out the tests on its own but entrusts the calculations to the banks, although it has the possibility of responding to the results.
Although the latter are not yet known, sources linked to the banks and to the regulatory authorities told Bloomberg that some of the banks are having better numbers than in the last tests, thanks to the higher earnings and to interest rate effect in income from loans granted.
At the same time, the European Union (EU) reached a interim agreement to reform the bank regulation, modifying the regulation and the directive on capital requirements. Among other points, the so-called output floorwhich will limit the variability of the levels of banks capital.
European Union
In addition, the negotiators agreed to introduce improvements in credit risk areashe market and the operational riskwhile looking for a greater optionality in the rulesadapting them for the smaller entities.
The agreement also includes a harmonized framework to evaluate the suitability of the members of the bodies of the entities and of the holders in key functionsas well as a regulation for safeguard the independence of supervisionwith a time limit on charges.
Source: Ambito
