MNI BRIEF: Investors Can Trust In ECB Bank Supervision - Enria
Recent events have put focus on interest rate risk, Enria says, but supervisors have tools they need
Investors and depositors can be confident in the strength of euro area banks following the collapse of SVB and Credit Suisse, ECB Supervisory Board chair Andrea Enria said in a speech Tuesday, adding that a restart of the debate on regulatory reforms “would not be productive.”
Instead, he said, the focus should be on delivering effective supervision through the implementation of Basel Committee’s final package, he said, with increased awareness of the potential balance sheet interest rate risk and funding and liquidity risk seen recently leading supervisors to “brush up supervisory tools aimed at tackling risks of the banking business that had long not been included among the priorities.”
“We are increasing supervisors’ discretion to focus their resources on the most important risks, and we are increasing our centralised controls to preserve and even enhance the degree of consistency we achieve in addressing risks across banks,” Enria said.