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By Valentina Za and Elvira Pollina
MILAN Oct 5 The European Central Bank sees no
risk of a banking crisis in the euro zone despite some
"individual cases" of lenders in trouble, senior ECB supervisor
Ignazio Angeloni said on Wednesday.
Banking shares have sold off this year amid investor worry
about the impact of low interest rates on their profits, high
piles of bad loans in some countries and a multi-billion-dollar
fine facing Germany's Deutsche Bank.
Angeloni, a senior member of the ECB's arm in charge of
supervising the euro zone's 129 largest banks, said the system
"There are individual cases of banks with problems, but the
system is solid," he told an event in Milan. "There are
supervisory and financial tools to deal with specific
situations. We don't see the preconditions for a systemic
The ECB is trying to get banks to manage down a 900 billion
euro pile ($1.01 trillion) of soured credit left over from the
This will include asking banks to set numerical targets for
the levels of non-performing loans they aim to reach in one and
three years, according to ECB guidelines published last month.
Angeloni acknowledged this process would take time but said
it needed to start immediately. "We must be aware that the
solution, even for banks where the problem is more acute, can't
be very fast. But precisely because it is a long process, it
should start right away."
($1 = 0.8937 euros)
(Writing by Francesco Canepa in Frankfurt; Editing by Mark