The European Commission on
Wednesday said that it would be watching reforms coming in
Italy's banking legislation, including proposals for a sort of
"bad bank" that may be created by the government to take on
non-performing loans from private-sector banks.
A spokesman said that the Commission "takes note of the
planned reforms of the Italian banking sector launched by
the...government," that also include changes to governance of
Italy's popolari banks.
The Commission is "in close and constructive contact," the
spokesman said.
According to some reports, the Commission is also concerned
that a 'bad bank' could constitute unfair State aid to the
private sector.
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