20/12/2021 (Agence Europe) – The ECB, acting as the single banking supervisor in the euro area, decided, on Friday 17 December, not to extend beyond 2021 the measure that allows banks under its supervision to operate with a short-term liquidity coverage ratio (LCR) of less than 100% without prudential measures being taken. Such a measure was introduced in March 2020 to enable the banking sector to cope with the Covid-19 pandemic (see EUROPE 12445/1). Starting in January of next year, large banks in the euro area will have to have a cushion of liquid assets that would allow them to cope with a massive withdrawal of these assets over a period of 30 days in the event of market stress. The average short-term liquidity ratio of ECB-supervised banks is currently 170%, compared to 140% before the pandemic. (MB)