European Central Bank Executive Board member Yves Mersch signaled that policy makers are relying on other institutions to rekindle the market for asset-backed securities in a bid to bolster lending to small companies.
Greece’s lenders need to boost their capital by 6.38 billion euros ($8.84 billion) after six years of recession and the country’s financial crisis left them with swelling bad loans, the central bank said.
Banks should be allowed to hold government debt on their balance sheets without setting aside capital against a possible default, former European Central Bank executive board member Gertrude Tumpel-Gugerell said.
Lloyds Banking Group Plc said it plans to exchange as much as 5 billion pounds ($8.4 billion) of debt issued during its bailout in 2009 for notes that comply with new regulations governing bank capital.
The International Monetary Fund wants a greater say in the fate of Greek banks because it’s worried that the European Central Bank is being too lenient on them, three people with knowledge of the matter said.
The Federal Reserve this month will take a step toward revealing more about its oversight of the financial system, an area where the central bank has yet to match the strides it has taken toward transparency in monetary policy.