ECB Moves to Edge Up Capital Requirements For Region’s Banks
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The European Central Bank slightly raised capital requirements for the region’s lenders, saying geopolitical risks had increased even as the industry continues to reap bumper profits.
Overall, banks face a minimum bar of 11.3% for high quality capital next year, up from 11.2% in 2024, the ECB said in a statement on Tuesday in Frankfurt. The watchdog sets one portion of those buffers, which increased after “changes in the risk profile of selected banks.”