Discuss current ECB agenda and key financial files
BRUSSELS, 29 October 2015 – ESBG presidents met today with ECB Vice President Vítor Constâncio to discuss the current ECB agenda and key financial files.
ESBG leaders raised priorities of the savings and retail banks including an illustration of the implications on bank stability should regulators set the leverage ratio above three per cent. ESBG gained insight during this fruitful debate on issues such as long-term refinancing operations (LTRO), asset-backed securities (ABS) and covered bonds, pensions sytems and Solvency II, total-loss absorbency capacity (TLAC), leverage ratio and risk-weighted assets, Capital Markets Union, and high-quality securitisation.
On the macro-economic situation, the ECB expressed concerned with a potential decrease in inflation explaining why they revised the second package of refinancing operations in September. Concerning the costs on banks posed by the high amount of current regulation, the ECB is aware of the increase but considers that they are worthwhile as they make banks more resilient and less risky, and second is hopeful that the recovery will make them easier to bear.
In terms of next steps, an annual stress test will be carried out by the ECB but it will be a less ambitious exercise in order to maintain the confidence in the market while saving resources from banks.