ECB’s Draghi calls for joint effort with lawmakers on bad loans

FRANKFURT (Reuters) – Tackling soured credit weighing on the balance sheets of euro zone banks is a top priority, requiring a joint effort between regulators, supervisors and national authorities, European Central Bank President Mario Draghi said on Tuesday.

The ECB has been criticized by Italy, including by the Italian head of the European Parliament, for encroaching on regulators’ prerogatives with its latest guidelines on how banks should deal with new bad loans.

“Currently the most important issue here is tackling non-performing loans,” Draghi told a conference.

“We therefore need a joint effort by banks, supervisors, regulators and national authorities to address this issue in an orderly manner, first and foremost by creating an environment where NPLs can be effectively managed and efficiently disposed of,” he added.

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