European banks want clarity on post-Covid capital rebuild

Supervisors urged to explain what will happen when pandemic relief on capital buffers expires

Euro protection

Bankers are urging supervisors to provide more detail on the timing and process for rebuilding their capital ratios to pre-pandemic levels once Covid-19 abates. If the current uncertainty over that rebuild process persists, bankers say, fears about how they will be required to replenish capital if loan books incur losses may make firms unwilling to maintain credit to the economy.

“It could be that supervisors give banks a relatively short timeframe to restore capital ratios to where they should

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