Occasional paper: The macroeconomic impact of the Next Generation EU instrument on the euro area Link
European Central Bank Thu 28 Jan 2021 10:12

Working paper: Transforming ‘sympathetic interlocutors’ into veto players Link
European Central Bank Thu 28 Jan 2021 10:12

Enria: We made a clear recommendation to exercise extreme moderation in remuneration in this extraordinary year.
European Central Bank Thu 28 Jan 2021 09:07

Enria: The negative interest rate policy has a negative effect on interest rate margins, but a compensating effect on lending volumes and on market valuations. It has avoided an even harsher recession and a deterioration of asset quality.
European Central Bank Thu 28 Jan 2021 09:07

Enria: I hope that there will be no need for asset management companies but it is important to make some preparations in this respect.
European Central Bank Thu 28 Jan 2021 08:57

Enria: We will start soon with the SREP 2021 cycle but we will give time to the banks to rebuild the buffers, at least until end 2022.
European Central Bank Thu 28 Jan 2021 08:57

Enria: We have intensified our pressure on banks on leveraged loans and we are asking for very attentive risk management in this area.
European Central Bank Thu 28 Jan 2021 08:42

Enria: There is concern on business model sustainability and consolidation could be an avenue to address this concern.
European Central Bank Thu 28 Jan 2021 08:37

Enria: On dividends, significant institutions are complying with our recommendations. Banks are giving positive feedback on their intention to comply.
European Central Bank Thu 28 Jan 2021 08:37

Enria: The pandemic weighed on bank profitability compounding existing structural weaknesses. Still, in 2020 some banks started taking beneficial transformation actions. Learning from this will help tackle the profitability issue going forward.
European Central Bank Thu 28 Jan 2021 08:22

Enria: Banks should act early to avoid cliff effects due to public support measures expiring. While credit risk increased within moratoria, credit impairments remain comparable to the broader loan book. We will closely monitor how banks identify and measure credit risk.
European Central Bank Thu 28 Jan 2021 08:22

Enria: Banks’ provisions appear to fall below comparative levels which may be due to the unique features of this crisis. We expect that social restriction policies will demand additional efforts and we remain vigilant to banks’ practices leading to under-provisioning.
European Central Bank Thu 28 Jan 2021 08:17

Enria: Credit risk and profitability are our main supervisory concerns. Increasing provisioning costs signal that banks are preparing for an increase in non-performing loans, but their preparations vary widely. Credit risk management remains one of our priorities.
European Central Bank Thu 28 Jan 2021 08:17

Enria: We have so far avoided excessive procyclicality as lending to firms and households continued in 2020 and up to now, credit standards have tightened less than in past crises.
European Central Bank Thu 28 Jan 2021 08:17

Enria: Credit losses from the pandemic are yet to materialise: buffer usage appears to be rather driven by individual structural issues than by the pandemic. Banks we supervise are well capitalised and we encourage them to use the ample room that is available to absorb losses.
European Central Bank Thu 28 Jan 2021 08:12

Enria: European banks were resilient in 2020 when the pandemic shock hit. They have so far absorbed the shock rather than amplifying it. Prudential measures doubled banks’ capital headroom, enabling them to cope with the impact and continue lending to the economy.
European Central Bank Thu 28 Jan 2021 08:07

Today is International Holocaust Remembrance Day. On this day, we light a candle to remember the 10,000 Jewish Frankfurters deported between 1941 and 1945 from the Großmarkthalle, which is now part of the ECB premises. May their memory be a blessing. #NeverAgain https://t.co/G9TDs0eFOD
European Central Bank Wed 27 Jan 2021 11:34

Working paper: The implications of liquidity regulation for monetary policy implementation and the central bank balance sheet size - An empirical analysis of the euro area Link
European Central Bank Tue 26 Jan 2021 13:38

Working paper: Risk aversion and bank loan pricing Link
European Central Bank Tue 26 Jan 2021 13:38

Working paper: Global impacts of US monetary policy uncertainty shocks Link
European Central Bank Mon 25 Jan 2021 11:02

Working paper: Statistical decision functions with judgment Link
European Central Bank Mon 25 Jan 2021 11:02

Panetta: Sustainable development is among the objectives of the European Union. As such it is among the secondary aims of the ECB, which can contribute to environmental policies in the implementation of monetary policy, for example through sustainable finance instruments 4/5
European Central Bank Mon 25 Jan 2021 10:52

Panetta: European regulation should ensure exhaustive information as to whether investments meet sustainability criteria. Empirical evidence indicates that disclosure makes firms pay more attention to sustainability without worsening their performance 3/5
European Central Bank Mon 25 Jan 2021 10:52

Panetta: Sustainable investment projects can play a crucial role in helping to invest excess savings and raise the growth potential of the global economy, while also designing a growth path that reduces social vulnerabilities and counteracts climate risks 2/5
European Central Bank Mon 25 Jan 2021 10:52

(THREAD) Sustainable finance represents an important innovation designed to ensure that the financial system is used for our collective well-being. It requires global coordination, says Executive Board member Fabio Panetta 1/5 https://t.co/4L2vZ6EcrY
European Central Bank Mon 25 Jan 2021 10:52