ECB expresses repeated concern over MDA thresholds

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ECB expresses repeated concern over MDA thresholds

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European Central Bank, Supervisory Board. Chairman Andrea Enria, during a press conference on 28.01.2020. Responsible for banking supervision, advice and support of affiliated banks in Europe. | usage worldwide | Wolfgang Minich/DPA/PA Images

The European Central Bank’s chief supervisor has spoken out this week against the complexity of the capital triggers that can lead to restrictions on payments of additional tier one (AT1) coupons. He expressed his fear that these arrangements could be having a negative impact on bank lending behaviour during the coronavirus pandemic.

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