Last week the European Central Bank set out new, stricter rules for how to and how much money needs to be set aside for non-performing bank loans. Yesterday the Italian head of the European Parliament, Antonio Tajani, wrote to Mario Draghi saying Parliament must be involved in this decision. (Italy holds about 30 per cent of the bloc’s €915 billion bad debts). Meanwhile of the 111 Euro area banks which underwent stress tests the ECB claims risk is ‘well managed in most European banks’. But a rise in interest rates would seriously affect the viability of 51 banks who must raise yet more capital. So almost half will be told how much new money they need to raise.
To continue reading, register today
to enjoy limited access to the following:
- Daily trading news
- Funds coverage
- Features on big investment themes
- Comprehensive companies coverage
- Economic analysis