The European Central Bank urges banks to closely monitor US dollar liquidity indicators.

MaticHoleFiller · 2026-03-24T04:47:09+00:00

European Central Bank senior official Pedro Machado emphasized that some banks are underperforming in dollar liquidity coverage ratios and net stable funding rates, urging banks to closely monitor dollar funding situations, although no stress has emerged currently. Overall liquidity conditions remain robust.

MaticHoleFiller

2026-03-24 04:47:09

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A senior official at the European Central Bank stated that, due to observed weaknesses in some key indicators of certain banks, the ECB is urging lending institutions to closely monitor their US dollar funding situations.

“We have also been calling on banks to actively monitor their foreign exchange funding,” said Pedro Machado, a member of the ECB Supervisory Board, at the meeting on Wednesday.

Machado noted that particular attention should be paid to the liquidity coverage ratio and net stable funding ratio of the US dollar, “in some cases, these two ratios are somewhat insufficient for certain banks,” though he did not specify which banks.

“So far, we haven’t seen any pressure in this area, but monitoring needs to continue,” Machado said at a conference organized by Handelsblatt in Frankfurt.

Machado added that overall, the liquidity situation “remains quite strong.”

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