Economics

EU reveals plans to help bloc’s banks with coronavirus loans

The European Central Bank has warned banks could be facing $1.7trn in bad loans under an extreme, yet possible, economic scenario

The European Union unveiled plans to assist countries in setting up a network of national “bad banks” to help cope with a possible avalanche of defaulted loans triggered by the pandemic.

Bad banks—private or government-funded repositories that soak up soured loans—are seen as a way to help Europe’s creaky banks navigate the Covid-19 downturn and be strong enough to lend during the recovery. The European Central Bank, which supervises the largest banks in the eurozone, has warned banks could be facing $1.7trn in bad loans under an extreme, yet possible, economic scenario.

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Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is ReachedExternal link

Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is Reached