The European Central Bank is stepping up scrutiny of lenders’ liquidity reserves and may communicate stricter requirements to individual firms later this year, according to people with knowledge of the matter.
The ECB’s annual review of the risks faced by banks will likely pay more attention to the management of liquid funds, including the potential for a higher bar on key metrics such as the liquidity coverage ratio, the people said, asking to remain anonymous as the matter is private. That comes on top of increased interaction between banks and the ECB on the topic, said the people.
Read More : ECB Intensifies Examination of Bank Liquidity, Considers Increasing Requirements