ECB strengthens liquidity monitoring of banks in the Eurozone

On July 22, the European Central Bank (ECB) announced that it will strengthen liquidity monitoring of banks in the Eurozone to reduce the risk of future financial crises.

ECB tăng cường giám sát thanh khoản của các ngân hàng

Outside the ECB headquarters. The ECB is stepping up its monitoring of banks' liquidity. (Source: Reuters)

In an interview with the press, the head of the ECB's European banking supervision unit, Andrea Enria, said that the agency has decided to send banks a request to report liquidity information weekly from September to have more updated data, helping to better monitor the liquidity situation.

Currently, banks submit liquidity reports to the ECB monthly.

The data includes information such as maturity dates for bank accounts, bank counterparties and rollover transactions with the ECB. This will help better manage the health of the most volatile assets and liabilities, such as deposits, Ms Enria said.

The ECB's move comes after a number of US regional banks failed in March, followed by the collapse of Swiss bank Credit Suisse, which raised fears of a global financial crisis.

Last June, the European Union (EU) adopted stricter regulations for banks to avoid a repeat of the 2008 financial crisis.

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