So says Bank of Italy governor Ignazio Visco
- Italian banks could draw in excess of $200bn from TLTRO’s
- ECB ready to consider new measures after TLTRO’s including acquisitions of assets on large scale
- Expects NPLS to fall by €5bn after sales through 2014
- State intervention could help banks offload NPLS as long as steps are compatible with EU rules
- Central bank is expanding range of loans that can be used as collateral for ECB funding
- Crisis has exposed inadequate, imprudent and incorrect behaviour at Italian banks
With the upcoming stress tests banks are still running around like headless chickens trying to clear the decks of things like non performing loans and it looks like the central bank wants to help with that. That’s a good idea in principle but it potentially means that it amounts to nothing more than window dressing while the crap is shoved out of the way somewhere.
