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1 Apr 2015
“We will be a tough supervisor but will strive to be fair” – ECB’s Nouy
FXStreet (Mumbai) - The European Central Bank (ECB) won't hesitate to take a tough line with lenders and the models they use to calculate risk, its supervisory chief Daniele Nouy warned on Tuesday.
In the supervisory authority's annual report, Nouy stated, “(We will be) keeping an eye on aggressive 'search-for-yield' strategies with a view to identifying lax credit standards",
Shw added, "We will be a tough supervisor but ... will strive to be fair,"
She warned of "a particularly high level of exposure to the corporate segment, in which non-performing exposures are steadily increasing" and said the ECB was monitoring crisis-hit countries as they were "more prone to corporate defaults".
"Ongoing monitoring is required to enhance consistency ... and to address possible shortcomings arising from the use of models by banks," she concluded.
In the supervisory authority's annual report, Nouy stated, “(We will be) keeping an eye on aggressive 'search-for-yield' strategies with a view to identifying lax credit standards",
Shw added, "We will be a tough supervisor but ... will strive to be fair,"
She warned of "a particularly high level of exposure to the corporate segment, in which non-performing exposures are steadily increasing" and said the ECB was monitoring crisis-hit countries as they were "more prone to corporate defaults".
"Ongoing monitoring is required to enhance consistency ... and to address possible shortcomings arising from the use of models by banks," she concluded.