ECB Will Remove Leveraged Finance Capital Charge for Some Banks

“Some banks have fixed the problems and will see the capital add-on go away,” Andrea Enria, who chairs the ECB’s Supervisory Board, said in an interview in Frankfurt. “Others have not and will keep it for a bit longer.”

European lenders have in recent years piled into credit for highly indebted borrowers, which were often the subject of private equity takeovers, as they sought to compete with US firms in an area that can generate high fees and help them win other business. The ECB raised concerns as far back as 2017 and the issue became emblematic of Enria’s push for lenders to get a grip on their credit risks.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ECB Quarter-Point Quandary Keeps Market on Tenterhooks(Bloomberg) -- European Central Bank officials will debate a quarter-point interest-rate increase on Thursday, and the decision could go either way. Most Read from BloombergBoss of Failed Crypto Exchange Gets 11,000-Year SentenceEverything Apple Plans to Show on Sept. 12: iPhone 15, Watches, AirPodsUS, EU Agree on Mideast-India Rail and Shipping Corridor at G-20California Shows an Electric-Car Uprising Headed for the USEx-Google CEO Eric Schmidt Scraps $67.6 Million Purchase of Abandoned Superya
Source: YahooFinanceCA - 🏆 47. / 63 Read more »