|Author (Person)||Beck, Thorsten, Bruno, Brunella, Carletti, Elena|
|Author (Corporate)||European Parliament: DG Internal Policies|
|Publisher||European Parliament: European Parliamentary Research Service (EPRS), European Union|
|Series Title||EPRS Studies|
|Series Details||PE 659.646|
|Publication Date||March 2021|
|Content Type||Research Paper, Textbook | Monograph|
Designing exit strategy requires judgment, coordination among different institutions, and graduality. Restoring banks’ balance sheet transparency is a first-order objective. To this end, borrower relief measures should be phased out ahead of the other measures. Relaxation of loan classification and provisioning policies can be lifted in a second stage. The last one to be unwounded would be capital relief initiatives. To provide banks time and space of manoeuvre, exit strategies needs to be communicated in a clear and timely manner.
This paper was prepared by the Economic Governance Support Unit (EGOV) at the request of the Committee on Economic and Monetary Affairs (ECON).
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic Governance | Situation, Financial Services|
|Keywords||Banks | Banking, COVID-19 (Coronavirus)
|International Organisations||European Union [EU]|