ECB requires banks to hold marginally more capital in 2022

The ECB has published the results of its Supervisory Review and Evaluation Process (SREP) for 2021. The findings of that annual assessment indicate that significant institutions have maintained solid capital and liquidity positions, with most banks operating at capital levels above those dictated by capital requirements and guidance. Banks’ scores remain broadly stable overall. Overall capital requirements and guidance increase marginally to stand at 15.1% of risk-weighted assets in 2022, up from 14.9% in 2021. Credit risk and internal governance remain key areas in terms of supervisory action.

Please find the associated press release here.