Nouy Says ECB Stress Test Didn’t Show Banks Need Recapitalizing
(Bloomberg) —
The ECB’s test of how banks would fare under economic distress didn’t reveal a need to recapitalize any of the lenders, says Daniele Nouy, head of the central bank’s banking supervision arm.
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As in previous years, the ECB will make “more severe” demands on some banks for how much capital they should hold, while others face “slightly better guidance”
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“The result of the stress tests are reasonably favorable. We do not have cases like we did in 2016 where there was a need for recapitalization”
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Stress tests can be improved in order to offer supervisors greater insight into the health of banks
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On Italian banks, she said: “We monitor the situation of all banks in all countries carefully and obviously the Italian spreads are unwelcome in this perspective, but it is not the last time that we will have to face questions like that”
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NOTE: The ECB didn’t publish the results of ~60 banks that it examined in parallel to the European Banking Authority’s test disclosed this month
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