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MNI BRIEF: ECB Ends Covid Crisis Liquidity Relief For Banks


The ECB will not extend beyond this year liquidity relief for banks with a liquidity coverage ratio below 100%, it was announced Friday. Banks were encouraged to draw down their liquidity buffers in March 2020 in response to the Covid-19 crisis, and were given until at least the end of 2021 to allow them sufficient time to replenish these buffers.

"The ECB expects all banks to maintain a liquidity coverage ratio of above 100% as of 1 January 2022. Currently the aggregate liquidity coverage ratio of banks under direct ECB supervision stands at about 170%, up from about 140% before the pandemic.," the ECB said in a statement.

MNI London Bureau | +44 20 3983 7894 |
MNI London Bureau | +44 20 3983 7894 |

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