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Campa (EBA) ensures that the tax will not affect the solvency of banks

Date: June 5, 2023 Time: 15:14:48

The president of the European Banking Authority (EBA), José Manual Campa, has broken a spear in favor of the European financial system, during a breakfast organized by the Forum Europe. The President of the EBA pointed out that, despite the macroeconomic context of economic uncertainty, with an economic crisis that is being managed, with a war at the door of Europe and a change in the economic policies of the central banks towards the normalization of rates, the starting point of the financial sector is good. In this sense, Campa recalled that the capital ratio of European banks is good, being one of the highest in recent years, with high levels of liquidity. “The provisioning policies continue to be prudent and the profitability of the banks is recovering, with 8% of means over own resources”, he asserted.

During the meeting, he was asked about the special tax on banks, which must be charged this year. For the president of the EBA, he has legitimacy in the sense that he has had the support of Parliament. In his opinion, this tax will not affect the solvency of Spanish banks, although he has acknowledged that it will have an impact on results. “The tax will have a cost for the Spanish banks”, he has sentenced.

Campa recalled that the EBA is about to launch the stress tests to publish them in July, “which would give a better view of how banks are in Europe.” In this regard, she recalled that these stress tests are not a prediction exercise, but trustworthy. Campa has defended his application since, as he has recalled, “they are of interest, in the sense that they are used by analysts, who download information and ask us questions about how they are built”. For campaigns, these tests are intended to give more information and try to preserve those vulnerabilities. “In short, it is an exercise in solvency,” insists Campa.

During his speech, Campa emphasized climate risk, which for the institution is one of the “fundamental risks to analyze.”

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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