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ECB extends capital relief for banks as pandemic continues - Metro US

ECB extends capital relief for banks as pandemic continues

FILE PHOTO: Workers maintain the huge Euro logo in front headquarters of ECB in Frankfurt

FRANKFURT (Reuters) – The European Central Bank has extended relief from a key bank capital requirement by nine months, citing “exceptional macroeconomic circumstances” amid the coronavirus pandemic, it said on Friday.

“The move extends until March 2022 the leverage ratio relief granted in September 2020, which was set to expire on 27 June 2021,” the ECB said in a press release.

“Banks that elect to use this extension should nevertheless plan to timely maintain sufficient capital in view of the expiry of the prudential exemption,” it added.

(Reporting By Francesco Canepa; Editing by Balazs Koranyi)

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