FRANKFURT Jan 15 The European Central Bank said
it has not yet decided on the capital requirement it will set
banks for a simulated recession in stress tests later this year.
"No decision has yet been taken," an ECB spokeswoman said on
Earlier, news agency Bloomberg, citing two euro area
officials with knowledge of the matter, reported that the ECB
favours requiring banks to show their capital will not fall
below 6 percent of their assets when it puts them through the an
adverse scenario test.
ECB President Mario Draghi has repeatedly said the ECB will
announce further details about the stress tests in late January
or early February. The capital requirements are expected to be
among the details released then.
ECB officials will meet to discuss the capital requirement
issue in the coming days.
The ECB will start supervising euro zone banks from November
as part of a broader project for closer financial integration in
the euro zone - banking union - to avoid a repeat of the
A single mechanism to wind up non-viable banks will form the
second pillar of the banking union.
(Writing by Paul Carrel; Editing by Sonya Hepinstall)