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ECB's Constancio says bank run triggered Banco Popular rescue
June 8, 2017 / 1:04 PM / 6 months ago

ECB's Constancio says bank run triggered Banco Popular rescue

TALLINN, June 8 (Reuters) - The decision to orchestrate a rescue of Spain’s Banco Popular this week was triggered by a run on the bank, European Central Bank Vice President Vitor Constancio said on Thursday.

“The reasons that triggered that decision were related to the liquidity problems. There was a bank run. It was not a matter of assessing the developments of solvency as such, but the liquidity issue,” Constancio told a press conference following the ECB’s regular policy meeting.

“Our role as ECB was just the declaration that the bank for liquidity reasons was failing or likely to fail,” he said.

The ECB, the euro zone’s top banking supervisor, stepped in to avert a collapse of Banco Popular, orchestrating a last-minute rescue on Wednesday by bigger local rival Santander . (Reporting by Adrian Croft and Francesco Canepa; Editing by Catherine Evans)

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