“The European banking sector is resilient, with solid levels of capital and liquidity,” the financial authorities said in a joint statement, after UBS approved the acquisition of Credit Suisse on Sunday.
The European Central Bank (ECB)as the supervisor of the banking sector, the Single Resolution Board (JUR) and the European Banking Authority (EBA for its acronym in English) expressed their satisfaction with the measures taken yesterday by the Swiss authorities to ensure financial stability and defended the soundness of the capital position and Liquidity of European banks.
The European banking sector is resistantwith solid levels of capital and liquiditythe financial authorities said in a joint statement after this Sunday UBS agreed to buy Credit Suisse in a transaction promoted by the government of Switzerland.
Similarly, the three institutions recalled that the resolution framework implementing in the European Union the reforms recommended by the Financial Stability Board following the financial crisis it has established the order in which the shareholders and creditors of a bank in difficulty must bear the losses.
Common equity instruments, in particular, are the first to absorb losses, and it is only after they are fully used that the write-off of additional Tier 1 capital is required.
This approach has been consistently applied in previous cases and will continue to guide the actions of SRB and ECB banking supervision in crisis interventions.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
