Banks in Europe need more information on the European Central Bank’s future supervision of their industry, said Juergen Fitschen, the co-chief executive officer of Deutsche Bank AG.
A number of details on stress testing and the exact timetable are still open, Fitschen, who is also president of the BdB Association of German Banks, said in a statement today. These should be “sorted out as soon as possible,” as the ECB’s assessment is “a major challenge for banks, particularly with the necessary personnel resources in mind,” he said.
The ECB plans to carry out a three-step examination of about 130 of the euro region’s biggest lenders before taking over banking supervision next year. Europe’s leaders entrusted the Frankfurt-based central bank to oversee the financial system to restore confidence in the region’s banks after the credit crisis of 2008 and Europe’s sovereign-debt debacle triggered the continent’s worst recession since World War II.
Current regulations should be examined for their effectiveness first, before thinking about further steps, Fitschen said in the statement, adding that “the large number of regulatory measures and their complexity threaten to overburden many, especially small banks.”