ECB to ask banks to provide weekly liquidity data to monitor their health - Enria

The European Central Bank (ECB) plans to request banks to submit their liquidity information on a weekly basis starting in September. This will enable the ECB to conduct more frequent assessments of banks' capacity to withstand potential challenges as interest rates increase. The ECB's supervisory head made this announcement on Saturday.

In an interview featured in Milano Finanza, Andrea Enria expressed that European banks had reinforced their strength, but financial markets were currently in a "fragile stage" as a result of the conflict in Ukraine, surging inflation, and rapidly escalating interest rates.

Enria emphasized that these elements have the potential to heighten liquidity and funding vulnerabilities. He mentioned that the ECB will be closely monitoring this aspect during the stress tests and other ongoing supervisory measures.

Enria stated that our plan is to begin requesting information from banks on a weekly basis starting in September. This will help us obtain more up-to-date data, which in turn will enable us to monitor liquidity changes more effectively.

At present, banks must furnish the European Central Bank (ECB) with liquidity data once every month.

The outcomes of the bank stress assessments will soon be disclosed, and Enria stated that they will demonstrate how European financial institutions are prepared to confront a possible economic turmoil with a more robust foundation, marked by increased levels of capital and more robust and trustworthy assets.

When questioned about whether Italy required a different major banking organization alongside UniCredit and Intesa Sanpaolo, Enria remarked that there was room for additional merging, similar to what has occurred in other European countries.

Written by Francesca Landini; edited by Clelia Oziel