ECB’s Governing Council - leverage ratio relief
The ECB has decided to extend the easing on the leverage ratio for banks until March 2022. This measure was launched to guarantee credit to the economy during the pandemic emergency, its natural expiry would have been June 27. The motivation is due to the persistence of "exceptional circumstances" due to the pandemic. This facility, which was decided on September 17, 2020, allows banks to continue to exclude deposits with Eurosystem central banks from the calculation of the leverage ratio. The result of the measure would be to help banks to provide credit to households and businesses and consumers. The measure continues because the exceptional circumstances due to the coronavirus pandemic continue to exist.