European Central Bank Utilizes Leverage Buffer to Counteract 'Window Dressing

The European Central Bank has applied an extra capital requirement to six banks with excessive leverage or that may be trying to give supervisors an excessively rosy picture of their financial position, ECB bank supervisor Andrea Enria said on Tuesday.

“On the leverage ratio requirements … we are looking at those particular risks that can cause excessive leverage,” Enria told a news conference. “So, banks which have particularly large derivative positions, securities financing transactions.”

Read More : European Central Bank Utilizes Leverage Buffer to Counteract ‘Window Dressing