Commenting on reports of the ECB telling lenders that they have to cover all of their existing NPLs (non-performing loans) within seven years, Italy’s Interior Minister and Deputy Premier Matteo Salvini recently said that the ECB’s Banking Supervisor was attacking Italian banks was being irresponsible. With the initial market reaction to Salvini’s comments, the shared currency came under a renewed selling pressure and slumped to a fresh weekly low of 1.1412.
Key quotes (via Reuters)
- EU banking union is creating instability.
- ECB’s unwelcome bank intervention risks costing Italy 15 billion euros.
- Just because ECB is independent does not mean it should be irresponsible.
- Calls for more transparency by ECB to remove any doubts it is using its powers for political purposes.
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