24.2 C
New York
Wednesday, July 6, 2022

Berlin, asked about Italy, says bail-in rules are key for saving banks

Berlin, asked about Italy, says bail-in rules are key for saving banks© Reuters. FILE PHOTO: A EU flag is seen outside the EU Commission headquarters in Brussels

BERLIN (Reuters) – The European Union’s “bail-in” rules covering failing banks are a crucial instrument, a German Finance Ministry spokesman said when asked about a Bank of Italy official’s comment that they were damaging and virtually impossible to apply.

“The bail-in rules that we came up with are one of the key lessons from the financial crisis – they are there and will be adhered to,” the spokesman told a news conference on Monday.

Designed after the global financial crisis to shield taxpayers from costly bank bailouts, bail-in rules require investors in a bank to bear losses before public funds can be tapped.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles