FRANKFURT, Germany | ECB taking action to reduce bad loans at eurozone banks

11Jul - by Editor - 0 - In STL.News



FRANKFURT, Germany — The European Central Bank said Wednesday it is taking further steps to address the problem of bad loans burdening bank finances and clogging the flow of credit to the economy.

The ECB said it would set expectations for each financial institution on putting aside adequate cash reserves to cover business loans that aren’t likely to be repaid on time or in full.

Soured loans have been a problem in Europe as they have hindered economic growth and complicated the political efforts to strengthen the setup of the euro.

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