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Berlin, asked about Italy, says bail-in rules are key for saving banks

Berlin, asked about Italy, says bail-in rules are key for saving banks
FILE PHOTO: People walk through the Canary Wharf financial district of London, Britain, December 7, 2018. REUTERS/Simon Dawson -
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SIMON DAWSON(Reuters)
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BERLIN (Reuters) - The European Union's "bail-in" rules covering failing banks are a crucial instrument, a German Finance Ministry spokesman said when asked about a Bank of Italy official's comment that they were damaging and virtually impossible to apply.

"The bail-in rules that we came up with are one of the key lessons from the financial crisis - they are there and will be adhered to," the spokesman told a news conference on Monday.

Designed after the global financial crisis to shield taxpayers from costly bank bailouts, bail-in rules require investors in a bank to bear losses before public funds can be tapped.

(Reporting by Michelle Martin; Editing by Tassilo Hummel)

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