Visco cautions ECB against forced sales of NPLs
Move to set minimum sell-offs could hamper banks’ recovery, Bank of Italy governor says
The governor of the Bank of Italy has warned that changes to the European Central Bank’s guidelines for handling non-performing loans should not include mandatory minimum sales of such loans.
A recently launched consultation on the ECB’s guidelines was “considering the introduction of mechanisms that set compulsory minimum writedowns” on NPLs, Ignazio Visco told an audience in Madrid on November 6.
Supervisors needed to strike a “delicate balance” between dealing with the NPL problem and
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