June 23, 2014 / 10:07 AM / in 4 years

Euro zone banking watchdog chief: markets favourable for bank capital hikes

DUBLIN, June 23 (Reuters) - The head of the new euro zone banking watchdog, Daniele Nouy, said on Monday that there seemed to be sufficient liquidity in the market for banks to raise more capital.

The new supervisor set up under the auspices of the European Central Bank is currently putting the euro zone’s largest banks through a thorough review before it takes up its new responsibility in November.

“The markets are in a reasonably benign situation and there is liquidity ready to be invested in banks, in equity or funding, if the markets are convinced by the transparency exercise that we are undertaking,” Nouy told reporters when asked if the ECB expected banks to carry out more capital raising.

Total measures banks have taken since July last year to strengthen their balance sheets amounted to 104 billion euros in April, for example through planned or already completed capital hikes or increases in provisions, the ECB said at the time. (Reporting by Padraic Halpin, writing by Eva Taylor; Editing by Hugh Lawson)

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