SAN - ECB to amend bank capital demands to prepare for stress test - Bloomberg

Cineberg/iStock Editorial via Getty ImagesStarting this year, the European Central Bank will 'tweak' bank capital demands by splitting up banks/lenders into four groups based on the capital buffer, or Pillar 2 Guidance, Bloomberg reports, citing ECB Supervisory Board Chair Andrea Enria.The ECB prepares lenders for the upcoming stress test this month in response to new European banking regulations, however, "we received a lot of questions from banks because the adverse scenario of stress tests this year is very heavy and challenging for banks," Enria said at a conference yesterday.As fiscal support comes to an end, credit quality weakness will likely get worse, European Central Bank Vice President Luis de Guindos said last month.Many banks don't disclose the Pillar 2 Guidance buffer, however, investors want to know how much banks can return via buybacks and dividends, according to Bloomberg.In addition, the ECB will remove its minimum "floor" of 1% for Pillar

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ECB to amend bank capital demands to prepare for stress test - Bloomberg