The European Central Financial institution has used an further capital need to 6 banks with abnormal leverage or that may possibly be attempting to give supervisors an excessively rosy picture of their fiscal posture, ECB bank supervisor Andrea Enria reported on Tuesday.
“On the leverage ratio demands … we are looking at all those distinct challenges that can bring about excessive leverage,” Enria advised a news conference. “So, financial institutions which have particularly massive derivative positions, securities funding transactions.”
“An added component is also an too much variability all over reporting days, that might sign some window dressing actions on the facet of the financial institution,” he extra.