Development News Edition
Give Feedback
write for Us

ECB's De Guindos warns of risks of EU planned bad loan reform

Updated: 04-12-2018 16:46 IST
The vice president of the European Central Bank, Luis De Guindos, warned on Tuesday of the risks of incompatibility with global standards of a planned reform of European Union banking rules that would facilitate the massive sale of bad loans.

EU finance ministers are close to finalising a broad reform of banking rules which includes, among other measures, a temporary favourable capital treatment for banks that carry out large sales of their bad loans.

De Guindos said the overall reform was a positive step but raised doubts about the proposed measure on bad loan sales which "could not be compatible with Basel standards", he said referring to the Basel Committee, a global banking standard-setting body. (Reporting by Francesco Guarascio; Editing by Alison Williams)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)