Top News

ECB's De Guindos Calls For Rebalancing Capital Buffer Rules

European Central Bank Vice-President Luis de Guindos said on Thursday that there is a need to rebalance capital buffer rules that help to mitigate economic deleveraging during downturns.

“A rebalancing of the current composition of capital requirements towards a more prominent role for the countercyclical capital buffer, keeping the overall level of capital requirements unchanged, could help mitigate costly economic deleveraging during downturns,” he said in Madrid, Spain.

He said the banks have made significant progress in repairing balance sheets and monetary policy accommodation continued to support lending volumes.

However, the weaker cyclical momentum and the low interest rate environment are weighing on bank profitability, de Guindos noted.


Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
Close
Close

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!