ECB sets stage to tackle ‘addicted banks’

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The European Central Bank (ECB) on Saturday adopted amended rules that clarify the harder line it will take on collateral pledged against its liquidity facilities, and the so-called "addicted banks" which rely on its funding.

Under the new rules, the central bank will be able to suspend, exclude or limit counterparties, where previously it was only able to do the first two. This would put the ECB on solid footing if it were to decide to cut-off a handful of European banks that have grown reliant

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