Bank of Italy slams ECB for "unwarranted" decisions over higher capital requirements
The Bank of Italy has criticised the European Central Bank (ECB) for "unwarranted" decisions over higher capital requirements for European banks, as it could jeopardise economic recovery. "Monetary policy in the euro area is currently striving to fight this risk and to restart lending. An unwarranted, generalised tightening of capital targets would be at odds with such an effort", said Fabio Panetta, Italy's member of the ECB's Supervisory Board in a letter to the ECB's head of supervision, Daniele Nouy. This comes as Germany objects to Ms Nouy, her deputy, Sabine Lautenschlaeger and ECB's President Mario Draghi over a new law that will put crucial rule decisions under national control.

Daniele Nouy, the chair of the European Central Bank's Supervisory Board, poses for a photograph following an interview in Frankfurt, Germany, on Wednesday, Jan. 28, 2015. Nouy said Greek lenders are capable of surviving current market turbulence. Photographer: Martin Leissl/Bloomberg

The European Central Bank risks criticism for "unwarranted" and "arbitrary" decisions over higher capital requirements for Eurozone lenders that could harm the fragile economy, according to a letter written by Fabio Panetta, Italy's member of the ECB's Supervisory Board.