ECB Freed Up $112 Billion at Banks to Bolster Credit Amid Virus

March 16, 2020, 9:34 AM

The European Central Bank freed up about 100 billion euros ($112 billion) of bank capital to maintain the flow of credit amid the spread of the coronavirus, according to a top regulator.

The money will be available for lending after the ECB decided to allow banks to operate with lower capital buffer and use subordinated debt to help meet their individual requirements, European Banking Authority Chairman Jose Manuel Campa said on Bloomberg TV.

“Banks are well capitalized and they’re operationally ready to confront the situation,” Campa said in an interview with Anna Edwards and Matt Miller on Monday.

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