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More effective bank capital buffer would boost resilience of financial system, ECB says

By Fiona Maxwell ( May 25, 2022, 10:44 GMT | Insight) -- Eurozone banks should have higher capital cushions that can be released during periods of stress, the European Central Bank said today, calling for lessons to be learned from the Covid-19 pandemic and Russia's invasion of Ukraine. Macroprudential policy action should be considered to “further enhance resilience against vulnerabilities that have already accumulated," the ECB said in its report on financial-stability risks in the euro area.Banks should have higher capital cushions that can be released in periods of stress, the European Central Bank said today, as it warned that the latest financial-stability risks in the eurozone, including the impact of the Ukraine war, could affect the health of lenders. ...

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