NPL reduction: Banks are given more time
ECB launches billion-euro bond purchase programme
Europe’s banks are being allowed more time to press ahead with the reduction of non-performing loans. As Bloomberg reports, this is only one of several measures currently being examined by the supervisory authorities. The regulators would definitely want to avoid a hole in the balance sheets of European financial institutions being torn out by the strict rules on NPL reduction in times of the corona crisis. A spokeswoman for the European Central Bank (ECB) declined to comment.
In the meantime, ECB President Christine Lagarde has announced the «Pandemic Emergency Purchase Programme» (PEPP). Until the end of the Corona crisis, the European Central Bank intends to buy up government and corporate bonds worth up to 750 billion euros. The ECB claimed it was «committed to playing its role in supporting all citizens of the euro area through this extremely challenging time. The governing council will do everything necessary within its mandate». Bloomberg, RTE