October 5, 2016 / 11:42 AM / a year ago

EU banking system has built more capacity to absorb losses -EBA

VIENNA, Oct 5 (Reuters) - The European banking system has built up a lot of loss- absorbing capacity but it is not yet at the point where it could handle the collapse of any player without a systemic impact, the European Banking Authority’s chairman said on Wednesday.

“We have built a lot of loss-absorbing capacity in the system, which I think should give reassurance to everybody that we are now in a much stronger position than we were some years ago,” Andrea Enria told reporters when asked about the plight of Deutsche Bank.

“We have worked a lot ... to build up a system in which we can have every bank basically exit the market without generating systemic impact,” he said, emphasizing that he was not speaking about any lender in particular. “Are we there yet? Not yet.” (Reporting by Francois Murphy; Editing by Susan Fenton)

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