Italian bail-outs may set bad precedent, ECB supervisor warns
But recent resolutions show system is working well operationally, Angeloni says
The recent resolution of two Italian banks using national rather than Europe-wide rules may set a bad precedent for further cases, a senior member of the European Central Bank (ECB) warns.
“Some observers express concerns that national liquidation with state aid, applied to significant banks directly supervised by the ECB, constitutes a precedent that may facilitate circumventing the rules in the future,” Ignazio Angeloni says.
The European Commission (EC) had “clearly explained that the
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