ECB: small banks vulnerable to withdrawal of Covid relief

By Tyler Davies
19 Nov 2020

The European Central Bank revealed this week that 10 small banks would be operating below their regulatory capital requirements if they hadn’t made use of transitional support measures during the coronavirus crisis.

The ECB warned on Wednesday that small and medium-sized banks were highly exposed to the economic problems caused by the coronavirus pandemic. 

It said the impact on these less significant institutions (LSIs) was likely to be felt most acutely in areas such as asset quality and solvency. 

“While governments, central banks ...

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