ECB lowers capital levels as EBA postpones stress tests
Coronavirus response sees ECB loosen limits for largest banks while EBA calls for supervisory flexibility
The European Central Bank lowered capital and liquidity requirements for the largest eurozone banks as part of its package to confront the coronavirus crisis, it announced today (March 12).
In another extraordinary measure, the European Banking Authority announced that it was postponing the stress tests of the European Union’s largest banks until 2021.
The single supervisory mechanism (SSM) will allow banks to operate temporarily below the level of capital defined by the Pillar 2 guidance, the
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