RTRS: ECB calls for national bad banks to help buy unpaid loans
The European Central Bank's Vice President called on Friday for the creation of government-backed bad banks to help soak up some of the euro zone's 1 trillion euros pile of unpaid loans stemming from the financial crisis.
"A true European AMC (asset-management company) faces however difficulties in the present environment. In more immediate terms, a way forward could be the creation of a European blueprint for AMCs to be used at national level," Constancio said at an event in Brussels.
"This European blueprint should clarify what is possible within a flexible approach to the existent regulation and encourage countries to adopt all necessary measures in a well-defined time frame."