FRANKFURT: The European Central Bank set aside the maximum amount of cash allowed last year to absorb potential losses on the debt it has bought since the onset of the coronavirus pandemic, the ECB's annual report showed on Thursday.

With the ECB accounting for less than a 10th of the bond purchases carried out by all the central banks of the euro zone, its provisions are largely symbolic.

But they show that policymakers are growing increasingly worried about losses on the debt they have hoovered up to support the economy since 2015, and at an increased pace since the pandemic started in 2020.

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The ECB increased its provisions for financial risks by 610 million euros to 8.2 billion euros, or the maximum allowed by ECB rules, as its bond portfolio swelled to 445.4 billion euros.

"The rise in estimated risks continues a trend which began in 2020 and reflects the growth of the ECB's monetary policy portfolio," the ECB said.

Under ECB rules, these provisions may not exceed the value of the ECB's capital paid up by its shareholders - the central banks of the European Union.