Our response to the coronavirus pandemic

We at the ECB have put in place a set of banking supervision and monetary policy measures to mitigate the impact of the coronavirus pandemic on the euro area economy and to support all European citizens.

“Unlike in the 2008 financial crisis, banks are not the source of the problem this time. But we need to ensure that they can be part of the solution.”

Andrea Enria, Chair of the ECB Supervisory Board

Our measures to support the euro area economy

Ensuring firms and households have access to credit

Reducing banks’ risks and increasing their lending capacity

Helping banks focus on providing vital funding to the economy

Encouraging banks to do their share

Helping the economy absorb the shock through asset purchases and long-term loans to banks
Ensuring firms and households have access to credit

Ensuring firms and households have access to credit

Banks play a vital role in supporting a healthy economy by ensuring that citizens and firms have access to funds they need for saving and investment. Because of their special position in the economy, banks also have to abide by particular rules to ensure that they are solid enough to withstand shocks. One of these rules stipulates that banks have to hold extra funds – called capital buffers – in store for difficult times.

A key component of our crisis relief measures is encouraging banks to use their capital buffers now. This frees up capital for €120 billion. Banks can use these funds to absorb losses resulting from the crisis, or earmark them to finance up to €1.8 trillion in new loans to households and businesses.

It is exactly in times like these that banks should use their buffers. This helps ensure that households and businesses continue to have access to funding in this difficult period.