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.”
Source:
http://uk.reuters.com
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.”
Source:
http://uk.reuters.com
