The European Central Bank should stop relying on banks' self-assessments when setting capital requirements and do its own homework instead, independent experts said on Monday.
The ECB has been blending its analysis with the banks' own to come up with capital requirements.
"Banks’ self-evaluations are often subject to biases that may become even more significant when ICAAPs play a prominent role in the determination of P2R ," the experts said in the report, referring to the second of three tiers of bank capital requirements set under global rules.They told the ECB to change the way it sets capital demands and focus "on specific risks requiring additional capital coverage, while significantly limiting the use of ICAAPs".
Fellow ECB supervisor Elizabeth McCaul welcomed a recommendation to use more "qualitative measures" with banks, which she said could include "limitations on business activity, demanding changes in the board and management, and monetary sanctions".
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
ECB´s Centeno: ECB should slow or pause rate hikesBloomberg has put out an article that states a quarter-point increase in interest rates is the most the European Central Bank has to deliver at its ne
Baca lebih lajut »
ECB’s Kazaks: ECB has the option of a 25bps or 50bps move in MayEuropean Central Bank (ECB) policymaker Martins Kazaks said on Monday, the central bank has the option of 25 basis points (bps) or 50 bps move in May.
Baca lebih lajut »
ECB deposit rate to peak at 3.75% in July – Bloomberg surveyAccording to the economists surveyed by Bloomberg, a majority of them expect the European Central Bank (ECB) to hike rates by 25 basis points (bps) at
Baca lebih lajut »
Germany's Buch seen as favorite to be new ECB top supervisor, sources sayThree women are seen as the top contenders to become the European Central Bank's new supervisory chief, with Germany's Claudia Buch considered the clear favorite, conversations with a dozen sources with direct knowledge indicate.
Baca lebih lajut »
EUR/USD rebound approaches 1.1000 as US Dollar fades recovery, ECB’s Lagarde, PMIs in focusEUR/USD consolidates intraday losses around 1.0980 as pair traders seek more clues to extend the previous day’s fall amid a sluggish Monday morning in
Baca lebih lajut »
Central banks have yet to script final act of inflation fight as risks riseMajor central banks may be deep into their drive to raise interest rates in hopes of killing inflation, but the endgame remains far from clear as price increases prove harder to slow than expected, and analysts caution that financial markets could still break along the way.
Baca lebih lajut »