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ECB sees no need for tighter prudential regulation in euro zone
December 15, 2016 / 10:19 AM / a year ago

ECB sees no need for tighter prudential regulation in euro zone

FRANKFURT, Dec 15 (Reuters) - 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)

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