EBA's Enria seeks to plug the holes in EU bail-in rules

Struggling but solvent banks could delay the hit from NPLs under the plan

Andrea Enria: plan to create a European Union asset-management firm capitalised by private investors

European authorities are contemplating the creation of an asset management company to help ease the burden of the more than €1 trillion in non-performing loans (NPLs) weighing down the banking sector.

The proposal would take the place of state aid where a bank is solvent, but struggling to meet its capital requirements, and it could help to inject more flexibility into measures to deal with such cases.

In a presentation at the European Stability Mechanism (ESM) in Luxembourg on January 30,