ECB paper looks at Covid-19 emergency supervisory measures
Relaxation of CET1 requirements positively affected lending, but change to Pillar 2 guidance did not
Two measures implemented by eurozone supervisors in the Covid-19 pandemic had different effects on lending, a working paper published by the European Central Bank finds.
The paper, How to release capital requirements during a pandemic? Evidence from euro area banks, uses supervisory and credit registry data on eurozone lenders. Cyril Couaillier, Alessio Reghezza, Costanza Rodriguez d’Acri and Alessandro Scopelliti look at two measures introduced in the eurozone response to the Covid-19 pandemic
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