Greece’s central bank is working on a plan to help banks cut their bad debts in half, the latest effort to restore trust in the country’s financial system, two people with knowledge of the matter said. Under the proposal, Greek lenders would transfer about half of their deferred tax claims to a special purpose vehicle, which would then sell bonds and use the proceeds to buy some 42 billion euros ($47 billion) of bad loans from the lenders, according to the people. They asked not to be identified because the plan hasn’t been finalized yet, Bloomberg News reported.

European Union governments have reached a preliminary deal to clamp down on money-laundering by strengthening bank supervision, but do not address key loopholes, documents show. A series of money-laundering cases at banks in several EU states have forced regulators to act after public outcry, Reuters reported. The preliminary deal, which could be finalised before EU finance ministers are due to meet in December, confirms proposals made by the European Commission in September to give more powers to the European Banking Authority (EBA).

Italy’s fiscal stimulus plans would leave the country vulnerable to higher interest rates that could ultimately plunge it into recession, the International Monetary Fund warned on Tuesday, recommending instead a “modest” fiscal consolidation to reduce financing costs, Reuters reported. The IMF said after an annual staff review of Italy’s economic policies that any temporary, near-term growth gains from the stimulus is likely to be outweighed by the “substantial risk” of a rapid deterioration.

Shares in Europe’s biggest zinc smelting company Nyrstar crashed to a record low on Monday after ABN Amro said they were virtually worthless and advised clients to “abandon ship,” the Financial Times reported. “Given Nyrstar’s liquidity position and the company’s large debt and interest burden, we believe a debt restructuring process is inevitable,” said ABN analyst Philip Ngotho in a report, reiterating his sell rating and setting a 1 cent target price, down from €1.

Italy's insolvent bank du jour, Banca Carige which was halted on Monday due to events profiled earlier has gotten a last minute lifeline, and after it was unable to raise €400MM in capital in the bond market, it received a €320MM liquidity injection from Italy's Interbank fund, which plans to purchase €320m of Carige bonds, ZeroHedge reported.

The Central Bank of Ireland opted not to change capital requirements on six institutions deemed to be of systemic importance to the Irish economy, The Irish Times reported. A review of what are known as “other systemically important institutions” (O-SII) was consistent with the 2017 review and therefore didn’t require any new policy changes, the bank said on Monday. Bank’s considered “too big to fail” include Bank of Ireland, AIB, Citibank Holdings Ireland, Ulster Bank Ireland, Depfa Bank and Unicredit Bank Ireland.

Field is seeking to obtain, in private, "further details" of the Insolvency Service's investigation around the 2016 collapse of BHS, including learning more about a pre-sale audit of the high street giant, Professional Pensions reported. It comes after details emerged in June of a £6.5 million fine levied by the Financial Reporting Council (FRC) against auditor PwC for its 2014 audit of Green's Taveta Group accounts.

A group of countries including the US, Brazil and China has objected to EU plans for splitting up sensitive import quotas with Britain after Brexit, in the latest sign of how big trading powers are stepping up their demands about how the UK’s departure should be handled, the Financial Times reported.

Toshiba Corp. said Thursday it would liquidate its U.K. nuclear business and sell its U.S. natural-gas business, taking a combined loss of nearly $1 billion. The moves are intended to clear away legacy problems after Toshiba went through waves of restructuring in the past three years that included the bankruptcy of its former Westinghouse Electric business in the U.S., The Wall Street Journal reported. The U.K. business—NuGeneration Ltd., known as NuGen—had sought to build what was planned as Europe’s largest new nuclear project in northwest England.

Mario Draghi has faced accusations of sending “ransom notes” and “diktats” to eurozone governments during a heated hearing at the Irish parliament, which represent the latest attack on the European Central Bank from lawmakers in the single currency area, the Financial Times reported. Mr Draghi was speaking to a parliamentary committee in Dublin on Thursday, where the ECB’s role in the country’s financial crash almost a decade ago remains deeply controversial.