This is intended to improve bank provision coverage ratios (see Figure C) and to ensure that banks are fully protected against likely losses in the resolution process. The higher regulatory minimum provisions should enable banks to focus on what the borrowing company requires to turnaround rather than on narrowly minimizing their own balance-sheet impacts.
Central banks have an inherent interest in accompanying the digital transition so that payments remain safe, efficient and inclusive. They must be alert and respond to three trends that are shaping the payments landscape. The first trend is the evolving preferences of European consumers and businesses.