ECB to scrap leveraged finance capital charges for

Aihucha News, September 11: The European Central Bank will eliminate capital surcharges on some banks after they address deficiencies in their leveraged financing operations. Enria, chairman of the European Central Bank's supervisory board, said some banks had solved the problem and the capital surcharge would be scrapped. Some other banks will need to continue paying fees for a period of time. Enria did not name the specific banks involved. It follows reports that the European Central Bank increased capital requirements for banks including BNP Paribas and Deutsche Bank on the grounds that they ignored warnings to cut the risks of leveraged financing. In addition, Enria confirmed that the European Central Bank will continue its crackdown. She said some banks that were not required to pay additional capital charges but had not yet addressed the issues identified last year could face new additional capital charges.