Capital Requirements Regulation: COVID-19 quick-fix (cepPolicyBrief to Regulation COM(2020) 310
On 10 June 2020, the European Parliament and the Council reached a compromise on amendments to the Capital Requirements Regulation (CRR quick-fix). The amendments shall allow banks to channel funds to businesses and households and to absorb the economic shock caused by the COVID-19 pandemic. cep has assessed the agreement in a cepPolicyBrief.
Capital relief for banks can support lending to the real economy in the COVID 19 crisis. However, they carry the danger that the mutual dependence of banks and states will continue to increase. Reducing this dependence was an important lesson from the financial crisis.