The European Central Bank’s supervisory chief pledged to stick with stringent capital requirements for banks, arguing this would lead to sustainable economic growth in the long run.
The ECB’s Single Supervisory Mechanism (SSM) took over the supervision of the banking sector this year, promising a tough line with banks, their capital levels and the models they use to calculate risk.
“More stringent and sustainable prudential requirements have a positive impact on sustainable growth,” Danièle Nouy, chair of the supervisory board of the SSM, said in remarks prepared for a speech she delivered in Berlin on Tuesday.
“We … take a medium to long-term perspective on this, resisting those who argue for short-term relief.”
Nouy said last week euro zone banks should expect another round of health checks in 2016 after the one last year.
Source: Reuters (Reporting By Georgina Prodhan; Writing by Francesco Canepa)