ECB Will Remove Leveraged Loan Capital Charge for Some Banks
- Some banks have addressed deficiencies highlighted by watchdog
- Enria confirms other lenders will face new capital add-ons
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The European Central Bank will remove a capital surcharge on some lenders after they addressed shortcomings in their leveraged finance businesses.
“Some banks have fixed the problems and will see the capital add-on go away,” Andrea Enria, who chairs the ECB’s Supervisory Board, said in an interview in Frankfurt. “Others have not and will keep it for a bit longer.”