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Financials

ECB cuts banks' market risk-related capital requirements

FRANKFURT, April 16 (Reuters) - The European Central Bank will temporarily lower commercial banks’ capital requirement related to market risk so they can keep functioning during the current coronavirus-related volatility, the ECB said on Thursday.

“With this decision, the ECB is responding to the extraordinary levels of volatility recorded in financial markets since the outbreak of the coronavirus,” it said in a statement.

“It aims to maintain banks’ ability to provide market liquidity and to continue market-making activities.”

The ECB said it would review this decision in six months. (Reporting by Balazs Koranyi; Editing by Hugh Lawson)

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