Euro Zone

One euro zone bank falls short of ECB capital requirements

cde.news desk 8 April 2019, 15:56 · 1 min read

epa07419964 (FILE) - The European Central Bank (ECB) in Frankfurt Main, Germany, 27 April 2017 (reissued 07 March 2019). The European Central Bank on 07 March 2019 indicated it would not raise the eurozone interest rates until in 2020, while announcing new stimulus measures to boost the single currency area economic growth. ECB President Mario Draghi said the eurozone is 'in a period of continued weakness and pervasive uncertainty. The near-term growth outlook will be weaker than previously anticipated'. EPA-EFE/ARMANDO BABANI

An ECB presentation showed on Monday that one euro zone bank is falling short of the European Central Bank’s capital requirements for 2019, meaning it will face restrictions on how much it can pay out to investors and executives.

Most of the 119 banks under ECB supervision had way more Core Equity Tier 1 (CET1) capital than demanded by supervisors. Four barely made their required level and just one fell short, the ECB’s presentation showed.

The ECB did not name any of the banks in its annual presentation on the standing of the euro zone’s top lenders.

As part of its Supervisory Review and Evaluation Process (SREP), the ECB also handed out “quantitative liquidity SREP requirements” to three banks, likely meaning they have to set aside more cash such as foreign-exchange buffers.

Via Euronews

Filed under Euro Zone Europe Explained

Topics Banks ECB Euro Zone

One euro zone bank falls short of ECB capital requirements

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