Eurozone needs ‘exceptional mechanism’ to resolve banks – BdF
Bloc is ready to resolve most challenges but still needs liquidity mechanism for larger lenders
Most banks in the eurozone are stable and can be resolved, but resolving large, international lenders could cause headaches for the Eurosystem, research from the Banque de France shows.
The study, by Riad Benahmed and Manon Houarner, says small and medium-sized banks in the bloc are safe. Even if they were to face trouble, national competent authorities, such as France’s Autorité de Contrôle Prudentiel et de Résolution, would be able to resolve them.
However, if a larger bank with multiple
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