European Banks Are Set for Relief on Sovereign Bond Holdings
- Measure is latest move to support lenders amid pandemic
- EU member states set to sign off on package of bank measures
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European banks are close to receiving capital relief on their holdings of sovereign debt as lawmakers bolster a package of measures intended to protect the industry from aftershocks of the coronavirus pandemic.
The European Union’s 27 member states agreed this week to sign off on legislation that would offset the “considerable negative impact” on capital requirements from any losses on government bonds, according to a document seen by Bloomberg News that summarizes the deal.