ECB could provide cash to failing banks if conditions met: Coeure

FRANKFURT (Reuters) – The European Central Bank could provide liquidity to failing banks while they are being resolved as long as they are not set for liquidation, have enough collateral and that doing so would not interfere with ECB policy, an ECB director said on Monday.

“It should be possible (but) it comes with important conditions that they have to be financially sound so if we know that the outcome of the resolution will be liquidation then of course we shouldn’t provide central bank liquidity,” Benoit Coeure told an event.

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