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ECB supervision chief says regulators cannot have zero-risk mindset

Original: Reg Wrap: ECB top says bank supervisors ‘cannot operate with a zero-risk mindset’

A senior European Central Bank official has said banking supervisors 'cannot operate with a zero-risk mindset', arguing that regulation must accept some level of risk to keep credit flowing to the economy. The remarks, reported by The Banker, touch on ongoing debate over how far supervisors should push banks to de-risk, with lenders warning that overly cautious rules can restrict lending.

Why now: Ongoing debate over banking regulation and the balance between financial stability and lending growth.

European Central BankThe Banker

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