Bank of Italy Letter Slams `Arbitrary' ECB Over Capital Demands

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  • Italian SSM board member says ECB capital calculation flawed
  • Letter to ECB's Nouy says capital rules 'jeopardize recovery'

A sign sits outside the entrance to the Banca d'Italia, Italy's central bank, in Rome

Photographer: Alessia Pierdomenico/Bloomberg

The European Central Bank risks criticism for “unwarranted” and “arbitrary” decisions over higher capital requirements for euro-area lenders that could harm the fragile economy, according to a letter written by Fabio Panetta, Italy’s member of the ECB’s Supervisory Board.

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