Countercyclical buffer releases may free €6bn at top EU banks
Banco Santander and BNP Paribas could free €1.1 billion each
The near-universal abolition of countercyclical capital buffers (CCyB) across the European Union in the wake of the coronavirus crisis could ease the capital requirements of systemic banks by around €5.9 billion ($6.3 billion).
Since March 12, eight EU countries, plus Norway and the UK, have slashed CCyBs to or near zero. This reduces the Common Equity Tier 1 (CET1) capital requirements for exposures located in these countries, lowering overall mandated levels for European banks.
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