Sector Regulation Sector Regulation

EU banks cancel out capital cushioning by taking more risks, ECB study finds

By Jack Schickler
  • 07 Aug 2020 03:55
  • 07 Aug 2020 03:55
Imposing higher levels of capital may do little to stop banks going bust, as weaker institutions seek to compensate for the loss of profits by issuing riskier loans, a European Central Bank study has shown.   

The ECB research paper suggests regulators should only gradually bring in extra requirements for banks to hold reserves,

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