According to EBA data, the average Capital Adequacy Ratio of EU banks was 19,3% in December 2019 – the highest level we have ever seen for years- mostly the result of capital enhancement actions taken by EU banks.
However, an ample degree of monetary accommodation remains necessary to safeguard favourable financing conditions and support the economic expansion, and thus to ensure that inflation remains on a sustained path towards levels that are below, but close to, 2% over the medium term.