Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

ECB’s Constancio Says Backstops for Bank Review Are Sufficient

Feb. 3 (Bloomberg) -- Backstops are in place for the European Central Bank’s Comprehensive Assessment of euro-area lenders, allowing for a “very rigorous” balance-sheet review, ECB Vice President Vitor Constancio said.

The first backstop for banks found to have capital shortfalls is the markets, Constancio told reporters in Frankfurt today. “Investors have been investing again in banks’ capital, and stock prices have increased,” he said.

The second resource open to banks in need of “balance-sheet repair” is public money, “which is available,” Constancio said.

“There was a solemn declaration by the Eurogroup regarding the backstops: first national backstops, and of course there is also the ESM,” or European Stability Mechanism, the euro-area firewall fund, from which euro states can borrow to prop up their banks, “as was recently the case with Spain,” he said.

“The backstops are there, are enough, and so we will absolutely conduct an exercise that will be very demanding and very rigorous,” Constancio said.

To contact the reporters on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net; Stefan Riecher in Frankfurt at sriecher@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.