MILAN, July 22 (Reuters) – The European Central Financial institution (ECB) will ask banks to offer weekly liquidity knowledge from September in order that it may perform extra frequent checks on their capacity to chase away potential shocks as rates of interest rise, the ECB supervisory chief stated on Saturday.
In an interview revealed by Milano Finanza, Andrea Enria stated that European banks had been stronger than earlier than however that monetary markets had been nonetheless in a “delicate part” because of the Ukrainian battle, greater inflation and fast-rising rates of interest.
All these elements can enhance liquidity and funding dangers, Enria stated, including that the ECB can be very targeted on this within the stress exams and different supervisory processes underway.
“We’ve got determined to ship banks, beginning in September, a request for data on a weekly foundation, in an effort to have more energizing knowledge that may enable us to higher monitor liquidity developments,” Enria stated.
At present banks are required to offer liquidity data to the ECB on a month-to-month foundation.
The outcomes of the financial institution stress exams might be unveiled within the subsequent few days, and Enria stated they might present that the European lenders can face a possible monetary disaster from a stronger footing, with greater capital ranges and extra stable and dependable belongings.
Requested if in Italy there was a necessity for a 3rd massive banking group in addition to UniCredit (CRDI.MI) and Intesa Sanpaolo (ISP.MI), Enria stated there was margin for additional consolidation as in different European member states.
Reporting by Francesca Landini; enhancing by Clelia Oziel
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