Bank sector tremors highlight need for demanding supervision: ECB

Kitco Media
By Reuters
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Reuters
FRANKFURT, March 28 (Reuters) - Banking supervision across Europe must not be watered down and volatility in the sector over the past several weeks illustrates the need for attention in the riskiest parts of the business, European Central Bank supervisory chief Andrea Enria said. "Being more risk-focused doesn’t mean being any less intrusive," Enria said in a speech on Tuesday. "On the contrary, we are placing increasing emphasis on a structured escalation of our supervisory interventions where banks’ progress is lagging behind clearly set timelines." Enria added that quick interest rate hikes also require supervisors to take a deeper look at how lenders manage interest-rate risk. (Reporting by Balazs Koranyi Editing by Francesco Canepa)

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