ECB targets NPLs with tougher prudential rules

Proposed regulation will only apply to new distressed assets from January 1, 2018

European Central Bank

The European Central Bank (ECB) intends to tighten its macro-prudential policies in an effort to deal with Europe’s non-performing loans problem. Proposals released today (October 4) specify a minimum level of provisions for new NPLs.

Distressed assets on the balance sheets of European banks stood at €1.1 trillion ($1.3 trillion) in December 2016, according to the European Parliament. Policymakers fear this high level of delinquency could reduce banks’ capacity to issue credit, hampering

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