ECB's Lautenschläger: Banks which are well capitalised are well prepared to withstand shocks

Sabine Lautenschläger, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, gave a speech in Dublin.

Key highlights

• Banks take on risks – that is part of their job. These risks, however, can lead to huge losses – not only for the banks and their investors but for the entire economy and all of us
• The crisis taught us that the failure of a single bank can damage the entire financial system and the economy
• While banks seem to agree with regulation in principle, they usually think it is too strict
• We seek to ensure that the burden is reasonable
• Rules may offer banks benefits
• Banks with a low level of capital and inadequate internal controls are viewed with suspicion
• The banking sector constantly evolves