Monday 24 July 2017

Bank of Italy hits out at ECB stance

Daniele Nouy, the chair of the European Central Bank's Supervisory Board
Daniele Nouy, the chair of the European Central Bank's Supervisory Board
Colm Kelpie

Colm Kelpie

The European Central Bank risks criticism for "unwarranted" and "arbitrary" decisions over higher capital requirements for Eurozone lenders that could harm the fragile economy, according to a letter written by Fabio Panetta, Italy's member of the ECB's Supervisory Board.

Fresh bank-specific capital requirements set by the ECB for the region's 120 biggest banks have been calculated according to criteria that overlap with last year's Comprehensive Assessment and, as such, don't justify the increases being proposed, Mr Panetta wrote to ECB head of supervision Daniele Nouy, pictured.

Within its first year as banking supervisor for the Eurozone, ECB officials have pushed for better loss-absorbing capacity across the board.

Irish Independent

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