Loans

ECB to stick with bad-loan proposal Italy opposed

ECB accused of overreach in recent proposal to hold banks to firm deadlines for writing down loans that turn sour.

bloomberg

28.11.2017

(Bloomberg) The European Central Bank is sticking to the substance of its plan to toughen bad-loan rules for euro-area banks even as it makes some adjustments in response to a barrage of criticism from Rome and Brussels, according to people with knowledge of the matter.

The ECB was accused of overreach in its recent proposal to hold banks to firm deadlines for writing down loans that turn sour. Daniele Nouy, the central bank’s head of supervision, has said that the wording of the plan will be improved and some concessions could be made. But the core of the plan will remain in place, the people said, asking not to be identified because the deliberations are private.