Tag Archives: Covid-19

Arbitrage in SME lending

One of the big concerns of the aftermath of the Covid-19 crisis is that the recovery might take much longer because many firms, particularly small and medium (SMEs), will have closed down for good. From the very beginning, different actions … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Limiting borrowers leverage

In the last post I talked about the countercyclical capital buffer (CCyB), a new regulatory tool to increase banks’ capital requirements that most countries have not used but that could have been effective to mitigate the Covid-19 crisis. As I … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Countercyclical capital buffers and regulatory discretion

One of the main regulations that banks have to comply with are capital requirements; in particular, banks need to hold a minimum amount of capital depending on the composition of their investments (assets). Actually, the use of the word “hold”, … Continue reading

Posted in Uncategorized | Tagged , , | 1 Comment