ECB’s Governing Council confirms that exceptional circumstances continue to justify leverage ratio relief
18 June 2021
- 18 June 2021
The Governing Council of the European Central Bank (ECB) has decided that it concurs with ECB Banking Supervision in that there continue to be exceptional circumstances allowing for the extension of the temporary exclusion of certain central bank exposures from the leverage ratio in order to support the transmission of the ECBs monetary policy.
- The Governing Council is of the view that the condition of exceptional circumstances warranting this temporary exclusion from the calculation of banks total exposure measure continues to be met for the euro area as a whole.
- The Governing Council concurs that on a quarterly basis the date on which the exceptional circumstances are deemed to have started is 31 December 2019.
- The opinion of the Governing Council is a precondition for ECB Banking Supervision to allow significant banks in the euro area, which it supervises directly, to exclude certain central bank exposures from the calculation of the leverage ratio.