Thursday , October 22 2020

EU weighs creating a network of bad banks


The European Commission is considering setting up a network of bad banks amid growing worries over non-performing loans during the coronavirus crisis, according to German newspaper Boersen-Zeitung.
The network would bring economies of scale by directly opening the affected institutions and their assets to multiple jurisdictions, according to the report. It cites a presentation by the Directorate-General Fisma, which is responsible for financial markets.
Concerns are mounting over distressed credit. The European Central Bank is warning that another round of lockdowns could add more than $1 trillion in non-performing loans to the pile, raising the possibility of banking sector bailouts.
“We are aware of the risks of NPLs arising as a result of the coronavirus,” a spokeswoman for the Commission told Bloomberg News, adding that a comprehensive strategy will be presented in the next few months.

About Admin

Check Also

RBA says policy easing gaining more traction

Bloomberg Australia’s central bank (RBA) said further policy easing is likely to “gain more traction” ...

Leave a Reply

Your email address will not be published. Required fields are marked *