ECB's Mersch Says Prudential Filters Should Be Applied Uniformly

(RTTNews) - European Central Bank Executive Board member Yves Mersch said prudential filters should be used uniformly in the bank stress tests.

The stress test should not be diluted by national interests, he said. That means that prudential filters must be applied homogeneously and must not be subject to discretion of national supervisors.

Mersch said tests are part of a "comprehensive assessment" and make the banking sector more resistant over long term, before the ECB take over responsibility as supervisor in November.

A thorough clean-up of the banking sector is required for sound credit provisions once demand picks up, central banker added.

Weak lending in the euro area is linked partially to muted demand for credit. But when economic growth gains momentum, the supply side should be well prepared.

More harmonization of securities regulation of members states is needed urgently so as to improve companies' capital market access, Mersch said.