BRUSSELS (dpa-AFX) - European Central Bank Vice-President Luis de Guindos said on Thursday that there is a need to rebalance capital buffer rules that help to mitigate economic deleveraging during downturns.
'A rebalancing of the current composition of capital requirements towards a more prominent role for the countercyclical capital buffer, keeping the overall level of capital requirements unchanged, could help mitigate costly economic deleveraging during downturns,' he said in Madrid, Spain.
He said the banks have made significant progress in repairing balance sheets and monetary policy accommodation continued to support lending volumes.
However, the weaker cyclical momentum and the low interest rate environment are weighing on bank profitability, de Guindos noted.
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