ECB Pressed by Banks to Extend Capital Relief Beyond June
- Banks argue relief will allow them to keep lending to economy
- European lenders have mostly reported better results this year
Photographer: Alex Kraus/Bloomberg
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Banks are lobbying the European Central Bank to extend temporary capital relief granted during the pandemic to keep credit flowing to fragile economies, according to people familiar with the matter.
Lenders on the continent have been pressing officials to be allowed to keep excluding deposits held at central banks when calculating their leverage ratio. The exemption, set to expire June 27, effectively makes banks looks stronger and allows them to do more business with existing financial reserves.