Regulatory Alerts2020-11-11
Communication of 10 November 2020: Exclusion of certain exposures to central banks from the leverage ratio calculation in light of the COVID-19 pandemic - Exercise of discretion for less significant banks
The Bank of Italy issued this communication on 10 November 2020 to formally declare the existence of exceptional circumstances justifying the exclusion of specific central bank exposures from the leverage ratio calculation for less significant banks. This measure, effective until 27 June 2021, aligns with the European Central Bank's assessment that monetary policy accommodation requires the proper functioning of the banking transmission channel during the COVID-19 pandemic. The exclusion applies to cash and reserve assets held with the Eurosystem central banks and enters into force the day after publication on the Bank of Italy's website.
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