The European Central Bank, acting as the single banking supervisor in the euro area, announced on Friday 18 June that banking groups under its supervision will be able to continue to exclude until March 2022 certain exposures to central banks from the calculation of the leverage ratio.
This measure, in force since September due to the exceptional macro-financial circumstances linked to the Covid-19 pandemic, was due to expire at the end of June. It only concerns reserves and deposits entrusted to the European System of Central Banks from the end of 2019.
According to end-2020 data collected by the ECB, the cumulative leeway thus created in the form of Tier 1 capital requirements would be around €70 billion.
More info at: https://bit.ly/2UhJxNB (Original version in French by Mathieu Bion)