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ECB says investors must share burden of any bank rescue
September 5, 2017 / 9:40 AM / 16 days ago

ECB says investors must share burden of any bank rescue

European Central Bank (ECB) headquarters building is seen in Frankfurt, Germany July 20, 2017. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - Private investors must share the burden of any bank rescue, a senior European Central Bank supervisor said on Tuesday, calling for subjecting the sector to “market discipline”.

“A substantial private sector burden-sharing is a non-negotiable prerequisite prior to public funds being touched,” Pentti Hakkarainen, a member of the supervisory board of the ECB, told a conference.

“In regulating and supervising financial institutions, we should still make space for market forces and market discipline to act,” he added.

Reporting By Francesco Canepa

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