European Central Bank Announces Capital Requirements Relief for Market Risk
04/16/2020The European Central Bank has announced its decision to temporarily reduce capital requirements for market risk in response to high levels of volatility arising from the COVID-19 pandemic. The reduction will be effected via the reduction of the qualitative market risk multiplier, a supervisory measure that is set by regulators and used to compensate for underestimation of market risk capital requirements. The ECB's decision will be reviewed after six months.
View the ECB's announcement on capital requirements relief for market risk.
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