The European Central Bank (ECB) monitors the credit risks of banks in the near future. According to the sources, the regulator is trying to figure out whether banks will withstand a possible wave of defaults due to the crisis.
The ECB and national watchdogs would also force large financial groups such as BNP Paribas and Deutsche Bank to provide additional information on their outstanding loans to companies. However, a spokesman for the Central bank of Frankfurt did not wish to confirm this.
The banks have already set aside a lot of money in recent months for loans that may never be repaid. However, the ECB would be concerned about the way in which various banks incorporate this type of credit risk in the books. If public support measures are to be phased out, they may face unforeseen circumstances.
