Bank of Italy Letter Slams `Arbitrary’ ECB Over Capital Demands
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A sign sits outside the entrance to the Banca d’Italia, Italy’s central bank, in Rome
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Italian SSM board member says ECB capital calculation flawed
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Letter to ECB’s Nouy says capital rules ‘jeopardize recovery’
The European Central Bank risks criticism for “unwarranted” and “arbitrary” decisions over higher capital requirements for euro-area lenders that could harm the fragile economy, according to a letter written by Fabio Panetta, Italy’s member of the ECB’s Supervisory Board.
Fresh bank-specific capital requirements set by the ECB for the region’s 120 biggest banks have been calculated according to criteria that overlap with last year’s Comprehensive Assessment and, as such, don’t justify the increases being proposed, Panetta wrote to the ECB’s head of supervision, Daniele Nouy, in a letter dated Aug. 25 and seen by Bloomberg…
Bank of Italy Letter Slams `Arbitrary’ ECB Over Capital Demands
