ECB may bring four more banks under direct supervision

10th May 2016, Comments 0 comments

The European Central Bank said Tuesday it will carry out an in-depth analysis of four banks that it may start to supervise directly.

The lenders are Citibank Europe, the Irish unit of US lender Citigroup; Italy's Banca Mediolanum; Slovenia's Abanka and Latvia's Rietumu Banka, the ECB said in a statement.

The ECB already supervises the euro zone's 129 largest banks to ensure they are strong enough to withstand crises without threatening the entire banking system.

Its supervisory role gives the ECB the power to investigate banks, vet their acquisitions and force them to raise capital reserves. It can also grant or revoke banking licences.

The ECB said it would conduct a "comprehensive assessment" of the four banks, which will include a review of the quality of the assets on the banks' balance sheet and a "stress test" checking their resilience to shocks.

The results of the assessment were expected in November, the statement added.


© 2016 AFP

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