The European Commission has introduced measures to allow the economy to reap the full benefit of government schemes to keep credit flowing.
Subject to approval from governments and the European Parliament, the measures include:
- delaying the full implementation of accounting standards that could erode banks’ capital;
- a lighter regulatory treatment of government-guaranteed loans;
- backing BCBS call to postpone the introduction of leverage ratio buffer for large banks from 2022 to 2023.
Link to related article: https://www.ft.com/content/dee4f940-226c-31d1-bd8a-eaf3c8e8d4ea