Philip R Lane: Stabilising the economic outlook Remarks by Mr Philip R Lane, Member of the Executive Board of the European Central Bank, at “The Outlook for the Economy and Finance” workshop (fully digital), organised by The European House – Ambrosetti, Frankfurt am Main, 27 March 2021.
Nominally high regulatory capital ratios -- even risk-based capital ratios that are 50 or 100 percent higher than the minimums -- are no longer indicators of bank soundness. Meanwhile, however, some of our largest and most sophisticated banks have been getting ahead of the regulators and doing the two things one must do in order to properly manage risk and determine capital adequacy.