April 22, 2017 / 5:05 PM / 4 months ago

ECB can help French banks but couldn't tackle yield rise - Visco

WASHINGTON (Reuters) - The European Central Bank can supply cash to French banks if needed after Sunday's presidential vote but tackling a rise in governments' borrowing costs would be beyond its remit, ECB policymaker Ignazio Visco said on Saturday.

"The problem is more long term and has to do with what happens to spreads (between government bond yields in different countries) but this transcends monetary interventions," Visco, who heads the Bank of Italy, said.

"If there is a liquidity problem, that (ELA) is an instrument."

Reporting By Francesco Canepa; Editing by Chizu Nomiyama

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