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ECB says no decision yet on capital requirement for stress test
January 15, 2014 / 9:56 PM / 4 years ago

ECB says no decision yet on capital requirement for stress test

FRANKFURT, Jan 15 (Reuters) - 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 Wednesday.

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 financial crisis.

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)

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