Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

28 November 2014

Reuters: ECB's Nouy says banks must show they can make profits


Default: Change to:


Daniele Nouy said that simply finding more capital to plug shortfalls uncovered by the stress test may not be enough.


"Partly because of the financial situation in Europe and partly because of the structure of the banking systems in Europe ... the sustainable profitability is probably the main challenge and the main risk for banks in the coming years," Nouy, who heads the ECB's banking supervisory arm, said.

"They have to establish sustainable profitability."

She added: "There are a number of banks that went through the comprehensive assessment, but might not go through next time."

From this month, the ECB became the direct supervisor for the single currency area's top 120 banks like Santander, BNP Paribas and Deutsche Bank with powers to force them to top up their capital buffers or make other changes to keep them safe and sound.

Nouy has already asked some of the banks who struggled in the stress test to resubmit their plans for reinforcing their capital buffers. The supervisor is now also taking into account a broader consideration of banks' business models, which marks a departure from their earlier narrow focus on capital levels.

Full article on Reuters



© Reuters


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment