Bankers fear leaks from ECB health check - futures io
futures io futures trading



Bankers fear leaks from ECB health check


Discussion in Traders Hideout

Updated
    1. trending_up 390 views
    2. thumb_up 0 thanks given
    3. group 0 followers
    1. forum 0 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Bankers fear leaks from ECB health check

(login for full post details)
  #1 (permalink)
Aurora, Il USA
 
Experience: Advanced
Platform: TradeStation
Trading: futures
 
kbit's Avatar
 
Posts: 5,902 since Nov 2010
Thanks: 3,294 given, 3,357 received

Euro zone bankers are worried that sensitive information will leak out before the official publication of the bloc's review of bank balance sheets, triggering speculation and making investors uneasy.

The European Central Bank is putting the euro zone's 128 largest banks through a rigorous health check before it becomes their supervisor in November and plans to publish the results in one go in October to avoid market disruption.

Even if some banks were to issue positive news about the tests, that might put pressure on other banks to show how well they compared.

"We see this as a problem," said Stefan Winter, head of the association of foreign banks in Germany, on Tuesday. He is also head of UBS's (UBSN.VX) German investment banking operations.

"There are several questions, which haven't been fully discussed yet."

Michael Kemmer, head of the German BdB banking association, pointed earlier this year to a significant danger that some information would come out between now and October.

"Such leaks would be poisonous for the financial sector. They could unnerve investors and thereby run counter to the initial aim of the exercise," he told Reuters at the time.

The ECB wants the review to help restore trust in the financial sector, by pushing banks to come to terms with non-performing loans and clean up their balance sheets so they are able to lend more again to companies and households.

Sources told Reuters last month that the ECB was in talks with the European Securities and Markets Authority (ESMA) to find a way to deal with leaks and rumors.

"All options are currently being assessed," a central bank source said.

The ECB declined to comment.

The problem is that the health checks will be done in different stages. Right now, more than 1,000 auditors and independent specialist appraisers are trawling through trillions of euros of assets, checking whether banks have set aside enough capital to cover potential losses.

A stress test will follow in May and June to check how banks hold up under potentially damaging scenarios.

The auditors have been asked to keep test-related information to themselves, but banks might be able to draw conclusions from the data and additional information the auditors are requesting.

Some bank chiefs have suggested imposing a fine for leaking information, similar to what the ECB did when it launched the manual for the asset quality review (AQR) earlier in March.

Three sources with knowledge of the balance sheet tests told Reuters at the time that recipients of the manual faced fines of 100,000 euros for leaking information early.

However, Andrea Enria, chairman of the European Banking Authority (EBA) told Reuters earlier this month that if the AQR revealed material discrepancies, banks would have to go public right away.

Bankers fear leaks from ECB health check | Reuters

Started this thread Reply With Quote


futures io Trading Community Traders Hideout > Bankers fear leaks from ECB health check


Last Updated on March 18, 2014


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1500 prizes from Topstep!

February
 

Battlestations! Show us your trading desk - $1,500 in prizes!

March
 

Call Option Buying: The New Pain Trade? w/Carley Garner

Elite only
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts