Europe's banks prepare for ECB tests with new provisions

Comments (1)
Leras wrote:

This is why Monetarists always fail. They Focus on abstract theoretical things, like money and reserves….even when it comes to regulating!
Is that what matters in Banks!!! To have reserves and “everything else is unimportant”?

Not e.g. Management Compensation, Anti Money Laundering Controls, Proper Procedures for Risk Management (Including Loans), etc…from a European Supervision perspective – which would surpass problems with National Central Banks independence (since their Chiefs are politically appointed).

So they are just gonna check the Bank’s assessment on whether they ll take the loans back – and request more Reserves!The “Abstract” academic NPLs assertions is not important and does not considers ethics….

The entire treatment is a great “Success Story”, much like in Greece. All that matters is reserves right? Greek Banks already
1. They got bailed out
2. Equally distribution of the burden to all tax payers (not e.g. the richest people who were getting 8% for Term deposits – e.g. at Proton Bank, or 6% at Piraeus Bank).
3. In 3/4 Banks Management hasn’t changed
4. They also got a “present”, to keep “good banks” and all taxpayers get to keep “bad banks”.

This is just Great!!! Not a bad deal for bankers. Again! And the regulator isn’t again doing anything…is just gonna be a “watcher” from a European standpoint now. Noting again….its like corruption is 10000 steps ahead than the supervisors.

Apr 15, 2014 10:21am EDT  --  Report as abuse
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