ECB issues guidance on leveraged transactions
Senior management must have “comprehensive” view of all leveraged loans
The European Central Bank (ECB) has issued guidance to the significant institutions it supervises on their leveraged transactions, saying it aims to “establish sound origination and risk management practices”.
The ECB says its supervisors “may ask selected banks to regularly report their exposures to leveraged transactions as well as the evolution and riskiness of these exposures”. Supervisors would adjust the intrusiveness of their inspections “depending on the risk profile of banks’ leveraged
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