The European Central Bank (ECB) will establish a matter to banks to present weekly liquidity records from September so as that it is a long way going to succeed in extra frequent checks on their capacity to beat back seemingly shocks as hobby rates upward thrust, the ECB supervisory chief acknowledged on Saturday.
In an interview printed by Milano Finanza, Andrea Enria acknowledged that European banks were stronger than earlier than but that monetary markets were mute in a „peaceable section” which capacity that of the Ukrainian war, greater inflation and hastily-rising hobby rates.
All these factors can lengthen liquidity and funding risks, Enria acknowledged, along with that the ECB will most likely be very interested by this within the stress tests and completely different supervisory processes underway.
„We like decided to send banks, starting in September, a inquire for knowledge on a weekly basis, in order to like brisker records that can allow us to greater computer screen liquidity traits,” Enria acknowledged.
Currently banks are required to present liquidity knowledge to the ECB on a monthly basis.
The results of the bank stress tests will be unveiled within the next few days, and Enria acknowledged they would possibly note that the European lenders can face a doable monetary crisis from a stronger footing, with greater capital stages and additional solid and bonafide sources.
Asked if in Italy there used to be a need for a third a lot banking community besides UniCredit and Intesa Sanpaolo (OTC:), Enria acknowledged there used to be margin for additional consolidation as in completely different European member states.
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