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EU banks concerned about ECB plan to tackle bad loans - letter

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EU banks concerned about ECB plan to tackle bad loans - letter

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ROME (Reuters) – European banks are concerned about an increase in regulatory uncertainty from a central bank proposal to tackle soured bank debt, the European Banking Federation said in a letter to EU officials distributed by Italy’s banking association on Tuesday. In the letter, dated Nov. 6, EBF Chief Executive Wim Mijs said the proposal had an “ill-defined scope”, because it was not clear if it could be applied to existing exposures. “Moreover, the stricter requirements put European banks with exposure in (the) non-euro zone area at a competitive disadvantage vis-a-vis local banks,” Mijs said. The plan would also implement the changes in a very short time period, and without a prior impact assessment, Mijs added. The letter was addressed to European Commission Vice President Valdis Dombrovskis, European Parliament Economy Committee chair Roberto Gualtieri, ECB supervisory chief Daniele Nouy and Estonian Finance Minister Toomas Toniste.

(Reporting by Stefano Bernabei; Writing by Isla Binnie)
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