ECONOMY

ECB watchdog urges prompt Greek bank fix before stricter rules in 2016

ecb-watchdog-urges-prompt-greek-bank-fix-before-stricter-rules-in-2016

Greek banks should be recapitalized by the end of the year, the European Central Bank's chief supervisor said on Wednesday in an interview, cautioning that stricter rules on distributing the losses of failing banks would come next year.

"In line with the implementation of the Bank Recovery and Resolution Directive (BRRD) in 2015 … a bail-in of depositors is excluded. This is also why the recapitalization of the Greek banks has to be concluded before the end of the year, as the full implementation of the BRRD in 2016 will be more rigorous," Daniele Nouy told Greek newspaper Ta Nea.

Her comments refer to rules that allow losses to be imposed on bank creditors including large savers. [Reuters]