BRUSSELS (Reuters) - The vice president of the European Central Bank, Luis De Guindos, warned on Tuesday of the risks of incompatibility with global standards of a planned reform of European Union banking rules that would facilitate the massive sale of bad loans.
EU finance ministers are close to finalising a broad reform of banking rules which includes, among other measures, a temporary favourable capital treatment for banks that carry out large sales of their bad loans.
De Guindos said the overall reform was a positive step but raised doubts about the proposed measure on bad loan sales which "could not be compatible with Basel standards", he said referring to the Basel Committee, a global banking standard-setting body.
(Reporting by Francesco Guarascio; Editing by Alison Williams)
