BUSINESS

ECB to keep options open for banks that fail tests

TAGS: Banking

The European Central Bank will decide “on a case-by-case basis” whether to demand that more capital is set aside by banks that come up short under stress in this year’s health check of the European credit sector, its top supervisor said on Thursday.

“With regard to shortfalls in the adverse scenario, we will decide on a case-by-case basis,” Daniele Nouy said at the Delphi Economic Forum in Greece on Thursday.

“Capital shortfalls in the baseline scenario need to be covered in any case. So for banks across the euro area, the stress test will be a moment of truth, no doubt about that,” she stated.

[Reuters]

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