ROME (MNI) – Although increased bank capital requirements may be
pro-cyclical, they will be useful if the crisis deteriorates, European
Banking Authority Chairman Andrea Enria said Friday.
Speaking at a conference in the Italian capital, Enria conceded
there is some question as to whether requiring banks to raise capital
under the current circumstances is helpful or merely reinforces the
current economic slowdown, as many senior Eurozone officials have
asserted in recent days.
However, “it will be surely better to have those buffers already
available …if the crisis gets worse and losses materialize,” he
argued.
–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
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