ECB approves of proposed NPL backstop
Proposed law change will not prevent supervisors from ordering banks to increase coverage – ECB
The European Central Bank has welcomed the European Commission’s proposals to reform the treatment of non-performing loans at commercial banks.
The proposed regulation would oblige banks in the European Union to hold a “prudential backstop” to cover their NPLs, the ECB said in an official opinion.
In a significant detail, the ECB said it “welcomes the clarification in the proposed regulation” that meant the backstop “does not prevent competent authorities from exercising their supervisory
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