The European Central Bank is looking to support eurozone banks by extending the relief from its capital requirements and renewing a recommendation not to pay dividends, Reuters reported on Wednesday, citing ECB sources.
“Both measures are set to be officially extended on Tuesday when the ECB will also publish the results of its vulnerability assessment – an exercise estimating how eurozone banks would, on aggregate, cope with the pandemic,” three sources further told Reuters.
Market reaction
The shared currency’s reaction to this headline was muted. As of writing, the EUR/USD pair was up 0.57% on a daily basis at 1.1592.
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