When and how to unwind COVID-support measures to the banking system?
In-Depth Analysis
12-03-2021
This in-depth analysis proposes ways to retract from supervisory COVID-19 support measures without perils for financial stability. It simulates the likely impact of the corona crisis on euro area banks’ capital and predicts a significant capital shortfall. We recommend to end accounting practices that conceal loan losses and sustain capital relief measures. Our in-depth analysis also proposes how to address the impending capital shortfall in resolution/liquidation and a supranational recapitalisation.
In-Depth Analysis
External author
T. Tröger, R. Haselmann
About this document
Publication type
Keyword
- banking supervision
- banking system
- BUSINESS AND COMPETITION
- civil law
- coronavirus disease
- crisis management
- epidemic
- EU banking union
- FINANCE
- financial institutions and credit
- financial solvency
- financial stability
- free movement of capital
- health
- LAW
- management
- monetary crisis
- monetary economics
- monetary relations
- money-market liquidity
- SOCIAL QUESTIONS