ECB Extends Timescale for Banks to Make Bad Loan Provisions

European banks have been given more time to set aside funds to cover losses from loans that go bad, after the European Central Bank bowed to pressure from Brussels lawmakers to water down its plans for a tougher treatment of toxic debts, the Financial Times reported. The move, which follows two years of debate between the central bank and European lawmakers, will be a relief to Italian politicians and banking executives who had protested about the initial proposals from the ECB’s Single Supervisory Mechanism. It follows the arrival of Andrea Enria, the Italian former chair of the European Banking Authority, as the head of the SSM, which supervises the eurozone’s biggest banks. Mr Enria replaced Danièle Nouy, the Frenchwoman who led the institution since it was created in 2014 and had made a reduction of bad loans one of its top priorities, at the start of this year. Read more