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EU finance ministers set to agree measures to lower uncertainty in bank wind-downs

Reuters  |  LUXEMBOURG 

By Francesco GuarascioLUXEMBOURG (Reuters) - European Union finance ministers are set to agree on Friday on rules setting the order in which bank creditors would be hit in case of wind-downs, in a bid to accelerate the build-up of banks' capital buffers to reduce the chances of public-funded bailouts.Under new rules adopted after the 2010-2012 euro zone debt crisis, banks are required to issue loss-absorbing debt that would be used in a liquidation to reduce taxpayers' costs, but that issuance has so far fallen short.One reason for the slow take-up is the fragmentation of EU countries' rules ...

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First Published: Fri, June 16 2017. 13:57 IST