Has the relaxation of capital and liquidity buffers worked in practice?
In-Depth Analysis
29-10-2020
We analyse the recent policy decisions made by the ECB and the national authorities related to capital, liquidity, and shareholders’ remuneration aimed at promoting credit supply from the banking sector to the coronavirus-afflicted economy. We forecast the impact of the regulatory decisions based on the empirical literature, discuss the factors that reduce the banks’ incentives to expand loan portfolios and develop policy suggestions intended to mitigate the effect of these factors.
In-Depth Analysis
External author
Alexandra MATYUNINA, Steven ONGENA
About this document
Publication type
Keyword
- Asia and Oceania
- bank
- banking
- China
- coronavirus disease
- documentation
- economic geography
- EDUCATION AND COMMUNICATIONS
- EP Committee
- epidemic
- EU institutions and European civil service
- European Central Bank
- EUROPEAN UNION
- executive power and public service
- FINANCE
- financial institutions and credit
- GEOGRAPHY
- health
- information analysis
- loan
- policy analysis
- POLITICS
- SOCIAL QUESTIONS