ECB targets NPLs with tougher prudential rules
Proposed regulation will only apply to new distressed assets from January 1, 2018
The European Central Bank (ECB) intends to tighten its macro-prudential policies in an effort to deal with Europe’s non-performing loans problem. Proposals released today (October 4) specify a minimum level of provisions for new NPLs.
Distressed assets on the balance sheets of European banks stood at €1.1 trillion ($1.3 trillion) in December 2016, according to the European Parliament. Policymakers fear this high level of delinquency could reduce banks’ capacity to issue credit, hampering
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