FRANKFURT, March 2 (Reuters) - The European Central Bank is seeking industry feedback on proposed new rules defining how much capital and cash banks must hold for their own safety, the ECB said on Friday.
“Banks are expected to assess the risks they face, and in a forward-looking manner ensure that all material risks are identified, effectively managed and covered by adequate capital and liquidity levels at all times,” the ECB said.
The new rules will kick in next year.
“Supervisory experience shows that banks may need to improve quality of their internal capital and liquidity adequacy assessment processes,” the ECB added. (Reporting By Francesco Canepa)