2023-06-01 04:53:00
The Belgian banking sector has shown itself “very resistant” in the face of the failures of Credit Suisse and several banks in the United States, the National Bank of Belgium (BNB) reported on Monday in its annual report on financial stability. This resilience is explained by the stability of customer deposits as well as capital and liquidity buffers “robust”, but banks must also use their leeway to “gradually increase” remuneration of deposits, analyzes the BNB. “We must not abuse patience” savers, said BNB Deputy Governor Steven Vanackere.
The falls of Silicon Valley Bank and Credit Suisse caused turbulence on the financial markets during the first months of the year. According to the BNB report, the Belgian financial sector has proved “very resilient” weather these events through strong solvency, better management of interest rate and liquidity risks, stability and diversification of customer deposits as well as “robust” capital and liquidity buffers.
The solvency ratio of Belgian banks (CET1) averaged 17.3% at the end of 2022, compared to 15.1% in Europe. They also had some 20 billion euros of free capital buffers at the same time.
Despite this solid financial situation, the BNB asks Belgian financial institutions to “not to relax their efforts”. It invites them to “gradually increase” the remuneration of deposits, “essential source” stable funding for loans granted to Belgian households and non-financial corporations.
“We understand that you have to keep an eye on stability, but at the same time we encourage the Belgian sector to do what is necessary to ensure the loyalty of savers”, said Vice Governor Steven Vanackere. “We must not abuse their patience.”
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