ACF | The ECB is proposing a tightening up of the provisions required from the European banks to cover loans which are classified as doubtful from January 2018, according to today’s press.
Ecofin agreed last week on a set of actions to be undertaken between now and end-2018 to reduce EU banks’ amounting €921 billion in September 2016 (almost 9% of the euro area’s GDP. At last the EU finance ministers acknowledged that possible “negative cross-border spillovers” from high NPL ratios in some member states require a common EU strategy to address the problem.