Responding to the ECB’s measures providing temporary capital and operational relief in reaction to Coronavirus, Michael Lever, Head of Prudential Regulation at AFME, said:
“These are a sensible series of measures which will ensure European banks can continue to support their customers in these challenging times. Banks hold capital buffers for contingencies such as the major disruption to economic activity that we are now experiencing as a result of Coronavirus and it is entirely appropriate that the ECB Banking Supervision guides banks to utilise them.
“Bringing forward the changes in how banks are to finance their Pillar 2 requirements is also a helpful move as is the ECB’s suggestion to national macroprudential authorities to relax countercyclical buffers appropriately. We have also noted the Single Supervisor’s pragmatic approach towards the management of its other interactions with supervised banks which is also welcome.”
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