EU Banks Set for More Capital Relief to Keep Loans Flowing
- European Commission to announce change to leverage ratio rule
- Treatment of IT spending, accounting rules may also factor in
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European banks are set for their fourth round of capital relief from regulators to help them keep loans flowing to companies hit by the spread of the coronavirus.
The European Commission plans to announce a series of measures Tuesday, including relief on how banks calculate a metric called the leverage ratio, or capital as a share of assets, according to people familiar with the matter. Regulators may also allow banks more time to implement an accounting requirement that forces them to set aside money for souring loans upfront, one person said.