ECONOMY

Regling: Creation of EU bad bank would be ‘valuable’ move

January 31, 2017 31.01.2017 • 19:43

Setting up a European bad bank to absorb the mountain of bad loans saddling lenders in several eurozone countries would be a “valuable” move to improve the bloc’s financial stability, the head of eurozone bailout fund, the European Stability Mechanism (ESM), said on Monday.

A plan to establish an “asset management company” that would facilitate trading the more than 1 trillion euros’ worth of bad loans in European Union lenders’ balance sheets was presented by the European Banking Authority.

Klaus Regling welcomed the EBA’s proposals and called for some sort of public support to the EU-wide bad bank.

Italy, Greece, Cyprus, Portugal and Slovenia are among the EU states with the highest level of bad loans in their banking systems, EBA figures show.

[Reuters]

Banking EU Euro

ECB bad-loan policy may also reach smaller banks

Commission: Greece has amended unfair guarantee

Cap on ELA for Greek banks drops anew

Greece’s Alpha Bank to sell Serbian subsidiary

Moody’s issues warning to banks over review delay

Greek bank deposits shrink in December

Subscribe to our Newsletters

ECB bad-loan policy may also reach smaller banks

Commission: Greece has amended unfair guarantee

Greek bank deposits shrink in December