Afme: EU must consider more relief on leverage ratios

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By Tyler Davies
26 May 2020

The EU should further loosen bank leverage ratio requirements if it wants to avoid a credit crunch amid Covid-19, according to Michael Lever, head of prudential regulation at the Association for Financial Markets in Europe.

The European Commission has already suggested some changes to the calculation of the leverage ratio, in an effort to make sure that banks can carry on lending through the coronavirus crisis.

Its proposal on April 28 essentially aimed to make it easier for lenders to exclude certain ...

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