FRANKFURT (MNI) – A trend toward less lending in the banking sector
of systemically undesirable loans could emerge following agreement on
new tougher liquidity standards for banks, European Central Bank
Governing Council member Ewald Nowotny said Monday.
Asked if bank customers would have to pay more for banking services
due to the tougher rules, Nowotny told the Austrian Press Agency, “that
will be a question of the competition.”
“The trend will be toward less credit,” the Austrian central banker
predicted. “But the categories that are especially affected are those
that we in any case do not want to have,” he added. Examples of such
undesirable categories include especially risky lending that need an
especially high capital securitization, he explained.
The Basel Committee on Banking Supervision agreed Sunday that banks
would have to more than triple their core tier 1 capital ratios to 7%.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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