ECB reportedly set to extend bank capital relief by nine months

Author: Justin Low | Category: Central Banks

Bloomberg reports

The report says that the ECB is poised to allow lenders to continue to exclude deposits held at central banks when calculating their leverage ratio up until March next year, citing people familiar with the matter.

The exemption was initially due to expire at the end of this month, 27 June to be exact. So, this will allow banks to continue to be perceived in a stronger financial standing and allowing them to conduct more business with existing reserves technically.

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Meanwhile, on the case of dividends, there is talk that the cap will be lifted in Q4.

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