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ECB provides temporary relief for capital requirements for market risk

The European Central Bank (ECB) announced (click to view the content) a temporary reduction in capital requirements for market risk, by allowing banks to adjust the supervisory component of these requirements.

The measure aims to:

  • Maintain banks’ ability to provide market liquidity and to continue market-making activities
  • Temporarily reduce a supervisory measure for banks (the qualitative market risk multiplier)

This decision will be reviewed after six months on the basis of observed volatility.

For more information on banking and other related issues, do not hesitate to contact our financial services team on dfcs@dfadvocates.com

Photo:  iStock

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