ECB’s Covid capital relief boosted too-big-to-fail banks
Capital headroom increased 176%
Global systemically important banks (G-Sibs) in the eurozone saw their minimum risk-based capital charges fall 39% after authorities introduced relief measures in the wake of the coronavirus crisis last year.
Data from the European Central Bank (ECB) shows that these too-big-to-fail lenders had a minimum Common Equity Tier 1 (CET1) capital requirement equal to 6.9% of their risk-weighted assets (RWAs) as of end-September. This would have been 11.3% without the easing of Pillar 2 buffers and
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