ECB steps up scrutiny by asking banks to provide liquidity data

European Central Bank (ECB).  - AFP/File
European Central Bank (ECB). – AFP/File

Berlin: The European Central Bank (ECB) has stepped up scrutiny as it will ask banks to provide liquidity data to avoid any risk of a future financial crisis. AFP informed of.

“We have decided from September to send requests for information to banks on a weekly basis, so that we have more recent data to better monitor liquidity developments,” said Andrea Enrea, the ECB’s supervisory head.

“It is a question of sending information on liquidity, with greater frequency, than what banks already send us on a monthly basis,” he said.

The data that the ECB has asked to be shared includes liquidity in bank accounts to maturity, their counterparty and refinance transactions.

This, Enria said, would help control the growth of “the most liquid assets and liabilities such as deposits”.

This development coincided with the bankruptcy of regional banks in the United States and the subsequent collapse of Credit Suisse, leading to fears of a global financial crisis.

The European Banking Authority (ABE) – the banking sector regulator – made this recommendation in June.

Strict measures have also been adopted by the European Union to prevent financial crisis like 2008.

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