Tin-hat time

摘要

When it comes to provisions for credit losses resulting from the coronavirus crisis made in first-quarter results, Deutsche Bank and Societe Generale stood out, with analysts saying both looked light on their provisions relative to the scale of the problems. While cynics might suggest that that was because neither has a lot of room to make more realistic provisions, both banks respond that they were actually heeding the advice of European regulators. And it is certainly true that the ECB has given banks plenty of leeway on accounting rules to make sure that a lack of capital does not stop banks playing a full part in backing the Continent's recovery.