Euro-Area Banks Face Tougher Risk-Model Scrutiny: Barnier

Euro-area banks face tougher scrutiny of how they measure the risk of losses on their assets, the European Union’s financial-services chief said.

Michel Barnier said that once the European Central Bank takes on oversight of euro-area lenders in November, its tasks will include tackling potential inconsistencies in the so-called risk-weight models banks use to measure the capital they need to withstand crises.