Brussels, 30/10/2014 (Agence Europe) - Andrea Enria, the chair of the European Banking Authority (EBA), has warned the European banking sector against any complacency following the recent publications of the results of the banking sector health check carried out by the ECB and the EBA.
“The banks of the EU have done a lot, but there is no room for complacency, even for the banks which passed the 'stress tests'”, Enria told a press conference in Berlin on Thursday 30 October. The comment went down badly with the financial markets. The Monte dei Paschi di Siena share, which has been suspended and then re-listed, continued its freefall on the stock exchange. The Italian bank has until early November to present the ECB with a recapitalisation plan, in which it must outline its plans to plug the capital deficit of €2.11 billion flagged up by the health check (EUROPE 11185).
The concerned EBA responded by issuing a press release clarifying its president's train of thought. “Significant progress has been achieved in strengthening banks' capital positions and identifying possible sources of risk”, the European agency declared. It added: “looking at a longer-term perspective, there is still work to be done, particularly for ensuring a smooth pathway towards full implementation of 'CRR/CRD IV' and preparing for the incoming 'BRRD' provisions” on banking resolution. (MB)