Bailins Coming In EU – 114 Italian Banks Have NP Loans Exceeding Tangible Assets
– Italy opposes ECB proposal that holds banks to firm deadlines for writing down bad loans
– Italy’s banks weighed down under 318bn of bad loans
– New ECB rules could ‘derail’ any recovery in Italy’s financial system
– Draft proposal requires banks to provision fully for loans that turn sour from 2018
– ECB insists banks have better access to collateral on delinquent debt to solve problem
– Investors should secure assets as proposal suggests more bailins on horizon and banks remain at risk
Another week and another unjustifiable move by the ECB to ‘protect’ the EU’s banking system. This time it is the decision to toughen bad-loan rules for euro-area banks.
The rules state that banks must be held to firm deadlines for writing down loans that turn sour. Banks will be required to provision fully for loans that turn sour from the start 2018.
This post was published at Gold Core on December 5, 2017.