The ECB plans to tighten collateral requirements next year, putting at risk the ability of banks to post Greek government debt as collateral at the central bank. The ECB’s Papademos says that the plans will not be delayed to suit the Greek situation.
In tis financial stability review, the ECB says the main risks ahead for the EU banking system are Eastern European aset quality, currency devaluation and cluster risk.
Bank losses are expected to moderate in 2010, especially if the economy rebounds, the ECB says.
EUR/USD dipped to 1.4310 but is holding just above the 1.4305/10 area where EUR/USD found support yesterday and again overnight.
