Policy measures in response to the COVID-19 pandemic

COVID-19 policy measures

This spreadsheet provides information on the policy measures taken by Member States, EU institutions and national authorities in response to the coronavirus (COVID-19) pandemic. It is updated on a regular basis.

This information is collected in cooperation with the European Central Bank, the European Commission, the European Supervisory Authorities and national authorities.

COVID-19 policy measures file
COVID-19 policy measures by country

Disclaimer: The information on this page is provided by the ESRB Members and should be used for information purposes only. It was last updated on 29 September 2022. Please see the disclaimer & copyright page for further details.

Five priority areas for the ESRB General Board

2. Market illiquidity and implications for asset managers and insurers

The sharp fall in asset prices observed at the onset of the coronavirus pandemic was accompanied by significant redemptions from some investment funds and a deterioration of financial market liquidity. If used in a timely manner, liquidity management tools may in particular help those funds that invest in less-liquid assets or assets that become temporarily illiquid and have short redemption periods.

3. Impact of large scale downgrades of corporate bonds on markets and entities across the financial system

The corporate bond sector has been impacted by the weak economic outlook due to the coronavirus pandemic. For this reason, the ESRB is assessing the impact of a common scenario of large-scale ratings downgrades across the financial sector. As part of this assessment, a simulation study was carried out to evaluate possible repercussions from large-scale corporate bond downgrades and potential fire sale impacts under a range of hypothetical scenarios and assumptions. This study has been summarised in a technical note.

4. System-wide restraints on dividend payments, share buybacks and other pay-outs

A number of ESRB member countries and institutions at the European level have encouraged banks and insurance corporations in the European Union to limit voluntary pay-outs (e.g. dividends, bonuses or share buybacks aimed at remunerating shareholders). Where enforced, these measures help to remove potential stigma attached to financial institutions choosing to preserve their capital resources in these critical times, enhance the resilience of the financial sector, strengthen its capacity to lend to the real economy in a crisis situation and reduce the risk of failure of financial institutions.

5. Liquidity risks arising from margin calls

The coronavirus pandemic and the recent oil market disruptions have caused a sharp drop in asset prices and increased volatility, resulting in significant margin calls across centrally cleared and non-centrally cleared over-the-counter derivative markets. The ESRB member institutions have been exchanging views on the possible adverse liquidity impact on both bank and non-bank entities, including in view of high degrees of market concentration and interconnectedness.