ECB says banks now have extra 1.8 tn euros to lend in virus fight

Eased rules on the capital buffers that banks supervised by the European Central Bank must hold to weather crises will free up lenders to issue as much as 1.8 trillion euros (USD 1.9 trillion), the institution said Friday.

With lower capital requirements, 120 billion euros is "available for banks to absorb losses without triggering any supervisory actions or to potentially finance up to 1.8 trillion euros of loans to households and corporate customers in need of extra liquidity," the ECB said in a statement.

The central bank had relaxed requirements as part of a major package of measures aimed at keeping cash flowing during the coronavirus pandemic which has left thousands of businesses shuttered and forced large swathes of employees to cut their working hours.