Correspondent, Brussels
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Nov 5, 2015

ECB policy setters warn of threat as Draghi shows ready to act

FRANKFURT, Nov 5 (Reuters) – Investors may be losing
confidence in the European Central Bank’s ability to keep prices
rising, a top policy-setter said on Thursday, another suggestion
the central bank remains ready to move.

Vice President Vitor Constancio said surveys showed
confidence was waning that the ECB could get inflation close to
its target of 2 percent annually. That echoed earlier remarks
made by an ECB policy setter from Belgium, Jan Smets.

Nov 5, 2015

Europe to stress-test its banks again, but none can fail

FRANKFURT, Nov 5 (Reuters) – Europe’s banks will be tested
to measure their financial resilience to adverse conditions next
year, regulators said on Thursday, although none can fail as
there will be no minimum capital hurdle.

The exercise follows many years of annual tests to assess
the capital strength of the banks following the financial crash,
but it marks a new phase where banks are not immediately forced
to recognise and plug any newfound financial holes.

Nov 4, 2015

ECB’s Draghi says failure to shield savers repeats mistakes of past

FRANKFURT (Reuters) – The euro zone should introduce a single scheme to protect savers across the euro zone, the president of the European Central Bank said on Wednesday, adding that failure to make such a reform undermined the currency union.

While not the first time Mario Draghi has called for such a move, his warning applies pressure on Germany and others to end a years-long deadlock on the issue. Berlin does not want its banks to be liable for losses elsewhere.

Nov 3, 2015

ECB calls money-printing a success ahead of possible extension

FRANKFURT, Nov 3 (Reuters) – Long-term loans to banks and
money printing are making it easier for companies and the public
to borrow, the European Central Bank said on Tuesday in a report
that comes weeks ahead of a possible extension of such schemes.

The study, signed off by the ECB’s Executive Board including
President Mario Draghi, shows its continued confidence in two
key pillars of ECB strategy to rekindle the euro zone’s sluggish

Oct 31, 2015

ECB reveals capital hole in Greek banks as unpaid loans soar

FRANKFURT (Reuters) – Greece’s banks need to raise more than 14 billion euros (10 billion pounds) of extra capital to cover mounting unpaid loans, the European Central Bank said on Saturday as it announced the results of stress tests intended to rehabilitate Greek lenders.

The capital hole has emerged chiefly due to the rising number of Greeks unable or unwilling to repay their debt, after a dispute over reforms between the leftist government and international lenders almost saw Greece leave the euro.

Oct 31, 2015

ECB tests show Greek banks have capital shortfall of 14.4 bln euros

FRANKFURT, Oct 31 (Reuters) – Greece’s banks need 14.4
billion euros ($15.85 billion) of fresh capital, the European
Central Bank said on Saturday, in health checks to start the
rehabilitation of the country’s lenders.

The announcement follows a series of stress tests on the
banks to see how they are faring after a long-running dispute
over reforms demanded of Greece for international support.

Oct 30, 2015

ECB to say how much Greek banks need to survive

FRANKFURT (Reuters) – The European Central Bank is expected to say on Saturday that Greek’s battered banks need up to 14 billion euros ($15.4 billion) in fresh capital in order to survive.

It comes after years of economic decline in Greece – bailed out three times by international lenders – that has forced some 42 billion euros to be set aside against bad loans.

Oct 30, 2015

Greece puts forward bank recap bill ahead of stress test results

ATHENS, Oct 30 (Reuters) – Greece on Friday put forward a
bank recapitalisation bill that outlines how new funds will be
pumped into its ailing banks to shore up their capital base, a
day before the European Central Bank releases results of its
health check on the big lenders.

The draft legislation, expected to be voted on Saturday,
will set in motion a hurried attempt to attract investors to
fill capital holes before European rules at the end of the year
could push losses on creditors such as large savers.

Oct 28, 2015

Top ECB policy makers reinforce case for fresh stimulus

RIGA/BERLIN, Oct 28 (Reuters) – The European Central Bank
will keep printing money until price growth picks up and has a
duty to use all instruments in its toolbox, including a deposit
rate cut, to achieve its inflation target, three key ECB
policy-makers said.

Their messages reinforced expectations for fresh policy
action from the ECB after President Mario Draghi said last week
the bank was considering new stimulus measures and would decide
on the matter when it gets updated inflation forecasts from its
staff in December.

Oct 28, 2015

ECB looking at all policy tools, may need to cut deposit rate

RIGA/TALLINN (Reuters) – The European Central Bank has a duty to use all instruments in its toolbox to achieve its inflation target and may cut its deposit rate further if price growth is slower than expected, two key ECB policy-makers said.

Last week the ECB said it was considering taking new policy steps to stimulate inflation, possibly including a deposit rate cut, and will make a decision on the matter when it gets updated inflation forecasts from its staff in December.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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