European authorities will prepare by the end of next year enhanced disclosure requirements on bad loans to all banks as part of an action plan to tackle the risk of non-performing loans (NPL).
Italy will pay up to €17 billion to break up two insolvent Venetian banks, which have posed a threat to the country's banking system, the government announced Sunday (25 June).
The new Single Resolution Board intervened for the first time early this morning (7 June) to save Banco Popular, a troubled Spanish bank whose deposits were protected without using taxpayers’ money after Banco Santander decided to acquire its assets.
The European Commission and Italy agreed on a bailout for embattled bank Monte dei Paschi that would pave the way for the injection of billions of euros.
Italy's plans to bail out two regional banks pose a dilemma for European regulators, who are still considering whether Monte dei Paschi qualifies for state aid, three months after giving a preliminary green light.