FRANKFURT (Reuters) – Euro zone countries should not cut releasable bank capital buffers given the resilience of the sector and some should even increase them, the European Central Bank said on Friday.
“The Governing Council supports national authorities planning to increase capital buffer requirements,” the ECB said in a statement.
“A further build-up of releasable capital buffer requirements to address vulnerabilities and enhance macroprudential space remains desirable in some countries, as prevailing banking sector conditions limit the risks of procyclicality.”
(Reporting by Balazs Koranyi; editing by Mark Heinrich)
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