Draghi raises possibility of ‘public backstop’ for NPLs

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ECB president Mario Draghi

Mario Draghi has suggested European authorities consider a "public backstop" for when private markets for non-performing loans (NPLs) are "not properly functioning".

European economies must avoid "fire sales" of NPLs, the president of the European Central Bank (ECB) told a press conference today (July 21). A backstop would be "very useful", Draghi said, adding it would need the agreement of the European Commission and, in particular, that of its director-general for competition.

Draghi's

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