2023-07-23 04:18:00
District banks are required to send information to the central bank on a weekly basis
Berlin – AFP
Posted on: July 23, 2023: 08:18 AM GST Last updated: July 23, 2023: 09:03 AM GST
The European Central Bank announced its intention to monitor liquidity more frequently in eurozone banks to reduce the risk of future financial crises.
“We decided to ask banks, starting in September, to send us information on a weekly basis, in order to obtain more data that would allow us to better supervise liquidity developments,” said Andrea Enrea, head of the Prudential Supervision Board, the European Central Bank’s body to supervise banks in Europe.
“It’s a matter of sending liquidity information more frequently, which banks already send us on a monthly basis,” he added.
The data includes details such as cash accruals in the accounts of banks and their counterparties and refinancing of transactions with the European Central Bank.
Enria added that this would allow for better control over the movement of bank “more liquid assets such as deposits”.
This initiative comes following the bankruptcy of banks in the United States in March and the forced acquisition of Credit Suisse by UBS, which raised fears of a global financial crisis.
This measure responds to a recommendation made by the European Banking Authority in June
At the end of June, the European Union adopted new, stricter banking regulations to avoid a repeat of the 2008 financial crisis.
In this context, the Chairman of the Supervisory Board called for better integration of the European banking sector in various countries.
He said a “more integrated market” for European banks “would be beneficial because they would be better able to withstand potential shocks”.
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