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ECB Seeks bigger say on Banks' Capital Requirements

FRANKFURT, April 14 (Reuters) - The European Central Bank urged European lawmakers on Tuesday to give it a bigger ​say on banks' overall capital requirements, including ‌those set by national authorities, in a bid to identify overlaps and blind spots.

The recommendation was one of 17 submitted ​by the euro zone's central bank to ​the European Commission as part of a consultation ⁠aimed at helping EU banks compete more effectively with ​rivals in the U.S. and elsewhere.

The central bank ​argued its policymakers should take a view on the total level of capital demands facing EU banks, including those set ​by ECB supervisors and others that are the ​purview of national authorities.

"It is proposed to make the ECB ‌Governing ⁠Council responsible for taking a holistic view of the overall level of capital demand within and across the banking union to fulfil the need for ​increased coordination," ​the ECB ⁠said in its recommendation.

The central bank said the assessment should be carried out ​by ECB policymakers and top supervisors together ​but ⁠left open how their findings should be implemented.

The ECB repeated other recommendations, such as whittling down macroprudential ⁠buffers ​to just two, clarifying the ​status of convertible bonds and expanding a favourable regulatory regime for ​small banks.

Reporting by Francesco Canepa; Editing by Kate Mayberry

Source: Reuters


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