European Court of Justice overrules ECB on French banks’ leverage
ECB’s reasoning on treatment of French savings accounts was “manifestly incorrect”, court rules
The European Court of Justice has ruled that the European Central Bank acted wrongly in calculating the leverage ratios of some French commercial banks.
This meant the six banks had to meet higher capital requirements than was justified by their exposures, the ECJ noted in a statement published on July 13.
The court’s ruling is the first to overturn a decision made by the ECB’s supervisory arm. The decision could have wider significance if more eurozone banks seek to challenge ECB supervisory
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