Events listed in [ECB] European Central Bank
Banks and insurance have key role to play in reducing climate-related financial ...
ID 26351
The ECB and the ESRB jointly released a comprehensive report addressing the implications of climate change on the EU financial system. The report introduces three frameworks to assess climate risks in relation to financial stability: risk surveillance, macroprudential policy, and broader risks associated with nature degradation. Indeed, the first framework focuses on financial stability risk surveillance, emphasizing advancements in measuring and modeling climate risk ...
Monetary policy decisions
ID 26257
On 14 December 2023, the ECB Governing Council decided to maintain the three key ECB interest rates. Therefore, the interest rate on the main refinancing operations, the interest rate on the marginal lending facility, and the deposit facility will remain at 4.50%, 4.75%, and 4.00% respectively. Although inflation has reduced recently, it is likely to increase temporarily in the near term. Yet according to ...
Monetary policy decisions
ID 25506
On 26 October 2023, the ECB’s Governing Council made key monetary policy decisions. They chose to maintain the three primary ECB interest rates unchanged: – the interest rate on the main refinancing operations at 4.50%; – the marginal lending facility interest rate at 4.75%; and – the deposit facility interest rate at 4.00%. The council’s assessment of the medium-term inflation outlook remained consistent, with ...
Eurosystem proceeds to next phase of digital euro project
ID 25375
The Governing Council of the ECB has approved the commencement of the preparation phase for the digital euro project. This decision follows the completion of the investigation phase initiated by the Eurosystem in October 2021 to explore potential design and distribution models for a digital euro. The design of the digital euro aims to **make it widely accessible to citizens and businesses through supervised ...
How usable are capital buffers?
ID 25019
On 20 September 2023, the ECB released an interesting Occasional Paper entitled „How usable are capital buffers? An empirical analysis of the interaction between capital buffers and the leverage ratio since 2016″. This paper investigates the use of capital buffers by banks in the euro area, taking into account the overlapping requirements of the risk-based capital framework and the leverage ratio capital framework from ...
ECB Monetary policy decisions & Press Conference
ID 24941
The ECB announced important monetary policy decisions on 14 September 2023 in response to the ongoing challenge of elevated inflation. Despite a declining trend, inflation remains persistently high and is expected to continue exceeding the ECB’s 2% medium-term target. To address this issue, the ECB has taken several key measures. Firstly, the **ECB has decided to raise its three key interest rates by 25 ...
Overall amount of unrealised losses in euro area banks’ bond portfolios contained
ID 24469
The ECB and EBA jointly conducted a data collection exercise, revealing that euro area banks supervised by the ECB reported net unrealised losses of approximately €73 billion in their bond portfolios held at amortised cost in February 2023. This amount was considered contained. The exercise covered both bonds held at amortised cost and at fair value through other comprehensive income, and it included information ...
Stress test shows euro area banking sector could withstand severe economic downturn
ID 24458
The ECB released the 2023 stress test results for the euro area banking system, assessing its ability to withstand a severe economic downturn. Two stress test exercises were conducted for significant institutions in the region. 57 institutions were part of the EU-wide stress test coordinated by the EBA and the ECB, while 41 institutions participated in the parallel stress test conducted solely by the ...
Monetary policy decisions
ID 24416
The ECB is determined to address inflation concerns and ensure that it returns to its 2% medium-term target in a timely manner. To achieve this, the Governing Council has decided to raise the three key ECB interest rates by 25 basis points. Therefore, the interest rate on the main refinancing operations will be increased to 4.25% and the **interest rates on the marginal lending ...
ECB consults on Guide on effective risk data aggregation and risk reporting
ID 24351
The ECB has launched a public consultation on its Guide on effective RDARR, which aims to strengthen banks‘ capabilities in this area. The Guide specifies and reinforces supervisory expectations, building on industry best practices and taking into account the BCBR’s Principles for effective RDARR (BCBS 239). It does not replace previous guidance but complements it. The focus is on project management and the role ...