Central Bank freeing up rainy day money could facilitate up to €16 billion in lending

Irish Times | Apr 7, 2020 at 5:22 PM
  • The Central Bank’s decision to release almost €1 billion in liquidity to the banking sector could facilitate lending of up to €16 billion, a note published by the regulator says.
  • The buffer effectively acts as a rainy day fund, requiring banks to hold capital in good times and release it in bad times.
  • In the letter, written by Sarah Holton, Gillian Phelan and Rebecca Stuart, European Central Bank policies were discussed.