The ECB reinforces the supervision of the liquidity of European banks to avoid financial crises

by archynewsycom
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He European Central Bank (ECB) announced this Saturday its intention to more frequently monitor the situation of liquidity of eurozone banks to reduce the risk of future financial crises.

“We have decided to ask the banks to send us information on a weekly basis starting in September, in order to have more recent data and to better follow the evolution of liquidity,” he declared. Andrea Enria, Chairman of the Prudential Supervision Board, the European banking supervisory body that is part of the ECB. Currently the information on liquidity is sent monthly.

This decision was taken after the bankruptcy of regional banks in USA in March, and the difficulties of Swiss creditwhich raised fears of new financial turbulence.

It also responds to a recommendation made in June by the European Banking Authority (EBA)the regulator that sets industry standards.

At the same time, the European Union adopted new, stricter rules imposed on banks in late June to prevent a repeat of the 2008 financial crisis.

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