Capital hawks advocate bail-in flexibility for Italy

As stress-test results loom, experts say tackling legacy loans should take priority over bail-in purity

colosseum
Italy's economy is growing, pointing to a problem of supervision rather than asset-quality deterioration

Advocates of stronger bank capital and regulation are calling for the European Commission to be flexible in applying new limits on bank bail-outs, just seven months after the legislation entered into force in January, to allow Italy to tackle high levels of legacy non-performing loans (NPLs) and weak bank balance sheets.

Europe's Bank Recovery and Resolution Directive (BRRD) limits member states from using public funds to bail out banks, instead requiring bondholders to take losses first – a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: