ECB set to rethink plan for curbing eurozone bad loans

Article source
Financial Times

The European Central Bank is set to rethink its plans to force eurozone lenders to face up to their bad loans after a wave of criticism from EU lawmakers and political leaders who say the proposals overstep the central bank’s authority and have sown confusion.

In an effort to tackle one of the most serious problems affecting the eurozone’s economic health, the ECB’s supervisory wing, the single supervisory mechanism, drafted proposals in October to make it more expensive for banks to hold future non-performing loans.

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