FRANKFURT, June 28 (Reuters) – Euro zone countries should not cut bank capital buffers and some should even increase them given record profits in the sector and clouds on the horizon, the European Central Bank said on Friday.
Lending has all but come to a halt in the euro zone for the past year as the ECB’s high rates discouraged borrowers and lenders, helping to prick housing bubbles in richer countries such as Germany.
But the ECB said national authorities should keep buffers designed to help banks absorb losses, noting property remained overvalued and debt high in some countries.
Source: REUTER
