The European Central Bank (ECB) announced Thursday that in light of the coronavirus pandemic, euro-area banks under its direct supervision may exclude certain central bank exposures from the leverage ratio.
The virus fallout "has affected all euro area economies in an unprecedented and profound way," the ECB said in a written statement.
It added that this has resulted in an ongoing need for a high degree of monetary policy accommodation, which in turn requires the undeterred functioning of the bank-based transmission channel of monetary policy.
"The condition of exceptional circumstances warranting the temporary exclusion of certain exposures to central banks from the calculation of banks' total exposure measures is met for the euro area as a whole," it said.
A total of 115 banks may benefit from this measure through June 27, 2021.
"Based on end-March 2020 data, this exclusion would raise the aggregate leverage ratio of 5.36% by about 0.3 percentage points," it added.
It also said the ECB would have to take a new decision should it wish to further extend the exclusion beyond June 2021, when the 3% leverage ratio requirement will become binding.
"This would require an upward recalibration of the 3% leverage ratio requirement," it concluded.
Please click to read our informative text prepared pursuant to the Law on the Protection of Personal Data No. 6698 and to get information about the cookies used on our website in accordance with the relevant legislation.
6698 sayılı Kişisel Verilerin Korunması Kanunu uyarınca hazırlanmış aydınlatma metnimizi okumak ve sitemizde ilgili mevzuata uygun olarak kullanılan çerezlerle ilgili bilgi almak için lütfen tıklayınız.