ECB Provides Temporary Relief For Capital Requirements For Market Risk

11th May 2020 • News

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.