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European Financial Services Round Table

Thursday, March 19, 2020
EFR Letter to the Executive Vice-President Dombrovskis addressing the economic fall-out of the Coronavirus Crisis

Addressing the economic fall-out of the Coronavirus Crisis

Forbearance rules should be applied flexible to allow banks to support a temporary weakness of their clients. A temporarily ban on short selling should be put in place in order to reduce speculation and volatility. The existing transitional relief should be extended and refreshed to provide up to 100% mitigation of the impact of IFRS9 on the capital regime. Regulators need to stand ready to take emergency decisions to avoid unintended short term consequences of the current crisis on the resilience of the insurance sector.