MNI BRIEF: Bank Capital, Leverage Relief To End in 2022 - SSM

Pillar 2 capital relief for banks will end in December this year, with leverage relief set to end in March, the ECB said Thursday -- a strong signal that the central bank's regulators at least judge the Covid-19 pandemic’s crisis phase is over.

“The capital space that we created for banks at the onset of the pandemic helped them to continue lending to households and businesses,” ECB Supervisory Board chair Andrea Enria said. “Today we are providing clarity on the path back to normality. We are confirming the initially envisaged timeline for a return to normal supervision of banks’ capital adequacy and leverage.”