ECB continue to maintain support to Greece´s banking system.

Eurozone banks have recently been given updated capital targets by the SSM, which call for them to strengthen their balance sheets based on the results of last year’s ECB stress tests and asset quality review. The SSM oversees the safety and soundness of 123 banks across the eurozone, taking over supervisory duties from national regulators last year.

There are questions about the quality of capital at Spanish banks, but also Greek and Italian banks. Greek banks were last year boosted by a change in the law allowing them to count more than €13bn of deferred tax assets towards their regulatory capital, following similar moves by Italy, Spain and Portugal. ECB continue to maintain support to Greece´s banking system towards their regulatory capital as eurozone banking regulation is harmonised.

Some banks, however, still have to get more capital, “There are too many, in my view, national options in the definition of capital in Europe and we have to address that. [ . . .] We may have to go to the legislature, to the European Parliament, to ask for more harmonisation in regulation” Ms Nouy, a former French central banker appointed last year to head the European Central Bank’s Single Supervisory Mechanism, said in an interview with FT on Tuesday.

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