FRANKFURT Dec 15 Risks to the euro zone
financial system remain contained as economic growth slowly
picks up, so no tightening of national prudential regulation is
needed, the European Central Bank said on Thursday.
Credit growth is recovering and the pick up in bank lending
indicates a progressive strengthening of the bank sector, the
ECB said after its Governing Council reviewed macroprudential
policies across the currency bloc.
Although there are only limited signs of asset price
bubbles, excessive house price growth or too much household debt
are an issue in several euro zone countries, the ECB added.
"The Governing Council agreed that a broadly based increase
in countercyclical capital buffers across the euro area is not
currently warranted," the ECB added.
"The Governing Council conducted its assessment of all
macroprudential decisions ... and did not deem it necessary to
apply higher requirements," it said.
(Reporting by Balazs Koranyi; Editing by Francesco Canepa)