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ECB defends proposal to tackle soured bank loans
October 13, 2017 / 6:35 PM / 7 days ago

ECB defends proposal to tackle soured bank loans

(Reuters) - European Central Bank supervisory chief Daniele Nouy defended on Friday a proposal to tackle soured bank debt, arguing that it is both necessary and within the bank’s its mandate.

FILE PHOTO: The headquarters of the European Central Bank (ECB) are illuminated with a giant euro sign at the start of the "Luminale, light and building" event in Frankfurt, Germany, March 12, 2016. REUTERS/Kai Pfaffenbach/File Photo

“The draft Addendum does not establish additional obligations on banks and therefore does not go beyond the existing regulatory framework,” Nouy said in a letter to Antonio Tajani, the president of the European Parliament.

“The draft Addendum falls within the supervisory mandate and powers of the ECB,” Nouy told Tajani after he criticised the proposal.

“In fact, it is an obligation of the ECB, in line with its supervisory mandate, to address this key vulnerability in the European banking system.”

Reporting by Balazs Koranyi Editing by Jeremy Gaunt

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