ECB reinstates liquidity requirement after pandemic suspension

EU flags fly in front of European Central Bank headquarters in Frankfurt
European Union (EU) flags fly in front of the European Central Bank (ECB) headquarters in Frankfurt, Germany, December 3, 2015. REUTERS/Ralph Orlowski

FRANKFURT, Dec 17 (Reuters) - The European Central Bank said on Friday it once again expected banks to own liquid assets covering at least the cash they would lose in the first month of a crisis, reinstating a requirement that was suspended at the onset of the pandemic.

"As the specific relief measure granted at the outset of the pandemic has not been extended, the ECB expects all banks to maintain a liquidity coverage ratio of above 100% as of 1 January 2022," the ECB said in a statement.

Reporting By Francesco Canepa

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