Daily Management Review

ECB’s new bad loan policy ruffles Italian feathers


30% of the European Union’s 915 billion bad loans are located in Italy, no wonder the proposal has tread on a nerve.

On Tuesday as per a letter published by the Italian Press states that the head of the European Parliament has told Mario Draghi, the President of the European Central Bank (ECB) that it must involve the European Parliament in the decision-making process regarding new guidelines for bank bad loans.

This development comes in the wake of the ECB’s new proposal last week which will force banks to boost their cash reserve ratios in order to set off newly classified bad loans.

For Italy this is a touchy issue since it holds nearly 30% of the EU’s 915 billion bad loans. As expected Italy has reacted strongly to the proposals, and has requested the ECB to soften them following a public consultation that runs until December 8.

Antonio Tajani, an Italian national, who is the President of the European Parliament told Draghi he was “deeply concerned” on how the new bad loans policy was being handled.

“I seriously wonder whether specific additional obligations...can be imposed on supervised entities without appropriately involving the co-legislators in the decision-making process,” said Tajani in the letter.

“I would urge you to take all steps in order to ensure that parliament’s prerogatives as co-legislator are duly respected, so as to avoid an inter-institutional dispute about this issue.”


Science & Technology

Credit Suisse: China will become the leader in AI sphere

Five new technologies that will change the world

Over 500 Genes Impacting Intelligence Identified By Scientists

MIT Scientists Say It Could Be Just 13 Years For Commercialization Of Nuclear Fusion

Apple patents MacBook with a keyboard screen

Vero: An Instagram killer?

Wacky Weather Causes ‘Split In The Polar Vortex’

Smart And Adaptive Artificial Eye Developed By Researchers At Harvard

NASA’s Mars Mission To Make Use Of Cold War-Era Atomic Rockets

Israel Completes Mars Habitat Simulation Experiment

World Politics

World & Politics

Ten world's largest importers of weapons

Christine Lagarde: there’s no winner in trade wars

10 best countries for freelancers

Alarming Concerns Or Driving Force Towards Green Energy? – Bitcoin Growth Comes At Environmental Cost

Catalan authorities refuse to greet the King of Spain

Ten Top Politicians To Be Investigated By Greek Parliament On Charges Of Taking Bribes From Novartis

The cloudy future of Saudi Arabia

Australia To Welcome Britain On The Latter’s Interest In Joining TPP