Buffer stops? Why banks haven’t used Covid capital relief

Amid weak credit demand, banks haven’t availed themselves of capital buffers, but they still might

As the coronavirus swept across continents, bank supervisors reassured panic-stricken governments and economies that they had freed up trillions in lending capacity by relaxing requirements for bank capital buffers.

The European Central Bank (ECB) freed €120 billion ($143.6 billion) – to be used either to cover losses or to finance up to €1.8 trillion in additional lending. And in April, a Bank of England Q&A indicated that reducing countercyclical capital buffers alone could support £190

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Modernising compliance functions with regtech

Regtech addresses the complexities of regulatory requirements, offering innovative tools to modernise compliance functions, streamline processes and enhance efficiency. This article explores its role in compliance and reporting within the banking sector,…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here