EU proposes urgent bank capital changes to respond to COVID-19
5 May 2020
Responding to the economic and financial conditions arising from the COVID-19 pandemic, the European Commission has published an Interpretative Communication on facilitating EU bank lending and proposed urgent targeted amendments to the EU Capital Requirements Regulation (CRR).
The measures being announced by EU authorities are meant to ensure that EU banks can continue lending to the real economy during any economic contraction caused by the lockdowns across Europe. The Commission’s Interpretative Communication underlines its support for those measures and its view that the EU’s existing capital framework includes “ample” flexibility for supervisors to help banks weather a downturn.
This article provides further insight on key aspects of the proposed CRR amendments.