European Central Bank (ECB) supervisory chief Andrea Enria has said that it will request weekly liquidity data from banks as it looks to address the impacts of interest rates rise.

In an interview with Milano Finanza, Enria said that while European banks were stronger than before, markets are in a “delicate phase” due to a range of factors such as higher inflation, fast-rising interest rates and Russia’s ongoing illegal invasion of Ukraine.

With all this in mind, the ECB wants to carry out more frequent checks on banks’ ability to react to potential shocks from interest rate rises. He said: "We have decided to send banks, starting in September, a request for information on a weekly basis, in order to have fresher data that will allow us to better monitor liquidity developments.”

This is an increase from the current status quo which sees banks required to provide liquidity information to the ECB on a monthly basis.

This ‘stress test’ will deliver results in the coming days, with Enria saying that they will show whether European banks can face a potential financial crisis from a stronger position with higher capital levels.

It remains unclear for how long banks will be expected to provide weekly liquidity updates to the ECB.

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