Effects of the Corona crisis: ECB chief supervisor wants bad bank
Institute to process bad loans from Europe’s banks.
As early as 2017, Andrea Enria brought a European bad bank into play as head of the European Banking Authority (Eba). A central institution was to take over accumulated NPLs of the major European banks – and then gradually liquidate them. Even as Chairman of the Supervisory Board of the European Central Bank (ECB), the bad bank concept does not seem to let him go.
According to market reports, Enria is planning a bad bank for the realization of the loans that have accumulated in European financial institutions since the financial crisis. For the ECB fears a further wave of NPLs in the coming months and years – caused by the spread of the corona pandemic.
However, the plans for the establishment of such a winding-up company are still at an early stage. The EU Commission is currently still rather critical of Enria’s initiative. A spokesperson from Brussels confirms that the Commission is not currently working on such a model. Financial Times
(Δικαιώματα εικόνων: istockphoto.com/Instamatics)