UniCredit and Intesa in focus as Parliament body hits back on NPLs
The European Parliament’s legal service has hit back against a proposal by the European Central Bank (ECB) to make banks provision non-performing loans (NPLs) more aggressively, as analysts grilled the management teams from Italy’s largest banks on how they could handle the problem.
The parliament obtained a legal opinion, seen by GlobalCapital, that the ECB has “no competence to adopt the measures” that would see new NPLs after January 2018 provisioned down to 100% — within two years for the unsecured parts of loans and within seven for a secured loan.
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