In a note issued on Wednesday, the ECB said it would send its forecasts to banks on reserves they should keep against non-performing loans, which put pressure on profits and lending capacity.
Poor debt in euro area banks is at 768 billion euros ($ 897 billion).
The guidelines will be harmonized to suit individual lenders' levels of bad debt and financial features for those lenders, "but will be applied in a consistent manner across banks," the report said.
The European Central Bank (ECB) warned in March that it had to deal more rigorously with bad loans and stressed the need to provide full coverage of the unsecured part of bad loans within two years.
Banks are required to comply with the European Central Bank with respect to the provision of bad debts beginning in 2021.
Note: The content entitled (European Central Bank gives banks time to deal with bad debts) was published first on the site (direct) and does not bear the encyclopedia of this news day content in any way.
You can see the details of this address (the European Central Bank gives banks time to deal with bad debts) through its original source any (direct) site.