You are here: Home » International » News » Others
Business Standard

European Central Bank issues fresh guidelines on lender's capital and cash

Although the proposed guidelines are non-binding, the ECB can threaten banks with higher capital requirements if they fail to comply

Reuters  |  FRANKFURT 

The European Central Bank published new guidelines on Friday defining how euro zone banks should calculate how much capital and cash they must hold for their own safety. The new guidelines, which will kick in next year, set out "principles" such as the need for banks to run "stress tests" to quantify their robustness in different circumstances. Although the proposed guidelines are non-binding, the ECB can threaten banks with higher capital requirements if they fail to comply. The initiative follows the demise of four euro zone banks in the past year, ...

This article is no longer available in our repository.

There could be multiple reasons for this.

First Published: Fri, March 02 2018. 18:01 IST
RECOMMENDED FOR YOU