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,

To view the latest version of this document and thousands of others like it, sign-in to MLex or register for a free trial.

Discover MLex

Stay on top of global regulatory developments


Latest News