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ECB's Angeloni says concerns over Veneto banks liquidation understandable
June 28, 2017 / 1:05 PM / 3 months ago

ECB's Angeloni says concerns over Veneto banks liquidation understandable

ROME, June 28 (Reuters) - Widespread concerns that the way two regional Italian banks were liquidated could set a precedent to sidestep European Union rules on banking crises should be taken seriously, a member of the European Central Bank’s supervisory board said on Wednesday.

The Rome government on Sunday wound down Banca Popolare di Vicenza and Veneto Banca using national legislation and taxpayers’ money, sparking criticism among officials in several European countries.

Ignazio Angeloni told an Italian parliamentary panel the operation respected European rules, but the criticism and concerns about its repercussions should still be considered.

“The worry about the possibility that the national liquidation, applied for the first time to significant banks supervised by the ECB, may create a precedent to sidestep the rules in the future ... must be taken seriously,” he said.

Angeloni urged the European Commission to hold a “systematic reflection” on the way the crisis of the Veneto banks had been handled and said the European banking union was “incomplete and therefore fragile.” (Reporting By Gavin Jones, editing by Valentina Za)

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