‘Premature’ to criticise Basel buffer flexibility, says ECB

The European Central Bank has said it is too soon to tell if banks will use the flexibility embedded in the Basel capital buffer framework because the credit impact of the coronavirus pandemic is still unclear.
Only nine firms were operating below their common equity tier one (CET1) buffer requirements as of the third quarter of 2020.
This is despite the banking supervisor telling firms that they should move through their Pillar 2 Guidance and capital conservation buffers if it will help them ...Already a subscriber? Login