ECB steps up monitoring of liquidity of banks in the Eurozone

Outside the ECB headquarters. The ECB is stepping up its monitoring of banks' liquidity. (Source: Reuters)

In an interview with the press, the head of the ECB's European banking supervision unit, Ms. Andrea Enria, said that the agency has decided that from September, it will send banks a request to report weekly liquidity information to have more updated data, helping to better monitor the liquidity situation.

Banks currently submit liquidity reports to the ECB monthly.

The data includes information such as maturity dates of liquidity in banks’ accounts, their counterparties and rollover transactions with the ECB. This will help better manage the health of the most volatile assets and liabilities, such as deposits, Enria said.

The ECB made the adjustment after several US regional banks failed in March, followed by the collapse of Swiss bank Credit Suisse, raising concerns about a global financial crisis.

Last June, the European Union (EU) adopted stricter regulations for banks to avoid a repeat of the 2008 financial crisis.