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ECB to Give Banks $83 Billion Capital Relief With Extension

  • Banks to see leverage ratio rise by 0.7 point on average
  • ECB tweaks calculation of metric to ensure resilience
A cyclist rides past the European Central Bank headquarters in Frankfurt.

A cyclist rides past the European Central Bank headquarters in Frankfurt.

Photographer: Alex Kraus/Bloomberg
Updated on

The European Central Bank said it will grant lenders about 70 billion euros ($83 billion) of capital relief by extending a measure designed to help them keep supplying credit to the pandemic-struck economy.

The ECB will allow lenders to continue to exclude deposits held at central banks when calculating their leverage ratio for nine months until the end of March next year, according to a statement from the ECB Friday. The measure boosts the ratio of the 39 banks who have used it by 0.7 percentage point on average.