This in-depth ana­ly­sis pro­po­ses ways to retract from super­vi­so­ry COVID-19 sup­port mea­su­res wit­hout peri­ls for finan­cial sta­bi­li­ty. It simu­la­tes the likely impact of the coro­na cri­sis on euro area banks’ capi­tal and pre­dicts a signi­fi­cant capi­tal short­fall. We recom­mend to end accoun­ting prac­ti­ces that con­ce­al loan los­ses and sus­tain capi­tal reli­ef mea­su­res. Our in-depth ana­ly­sis also pro­po­ses how to address the impen­ding capi­tal short­fall in resolution/​liquidationand a supra­na­tio­nal reca­pi­ta­li­sa­ti­on. This paper was pre­pared by the Eco­no­mic Gover­nan­ce Sup­port Unit (EGOV) at the request of the Com­mit­tee on Eco­no­mic and Mone­ta­ry Affairs (ECON).

Quel­le /​ Link: When and how to unwind COVID-sup­port mea­su­res to the ban­king system?

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Stu­die – Auf­sicht­li­che Locke­run­gen ver­schlei­ern Risi­ken in Bankenbranche