Thus, we are gathering data on the actual impact of the pandemic on the banks and on their clients. Hence, we will review the use of regulatory buffers. The use of these buffers enables banks to absorb losses, expand lending operations and meet the liquidity needs of their clients, including MSMEs and people living in rural communities, without unduly impairing banks’ long-term viability.
Non-banks have absorbed the vast majority of the new debt securities issued by non-financial corporates in the euro area this year – notably also from sectors more sensitive to the economic fallout from the pandemic. At the same time, non-banks also played a more negative role in amplifying the market turmoil this spring.