The European Central Bank can set binding requirements if it thinks a bank is not cutting its pile of unpaid loans fast enough, the ECB official in charge of tackling non-performing loans (NPL) in the euro zone said on Wednesday.
FRANKFURT The European Central Bank can set binding requirements if it thinks a bank is not cutting its pile of unpaid loans fast enough, the ECB official in charge of tackling non-performing loans (NPL) in the euro zone said on Wednesday.
“If supervisory judgement supported by benchmarks concludes that certain NPL strategies are not sufficiently ambitious or are not appropriately implemented, we will consider additional measures on a case-by-case basis,” said Sharon Donnery, chair of the ECB group setting new NPL guidelines.
“We already have the legal tools available to us if necessary, for example expectations can be turned into binding requirements by implementing them as part of the Supervisory Review and Evaluation Process (SREP).”
(Reporting By Francesco Canepa- editing by John Stonestreet)
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