ECB Curbs Black Box Models to End Standoff Over Risky Loans

BloombergMonday, September 8, 2025 at 2:33:29 PM
ECB Curbs Black Box Models to End Standoff Over Risky Loans
The European Central Bank has resolved a prolonged dispute with banks regarding the capital they must reserve for risky loans by reducing reliance on a contentious model that demanded significant additional provisions.
— via World Pulse Now AI Editorial System

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ECB’s Guindos Cites ‘Red Lines’ on Capital as Banks Seek Relief
NeutralFinancial Markets
European Central Bank Vice President Luis de Guindos emphasized the importance of maintaining financial strength while banks seek regulatory relief, indicating that there are 'red lines' that will not be crossed in easing capital requirements.