ECB asks small banks in the euro area to build additional reserves to cover risks related to non-performing loans
Raluca Ioana Draghici
Economy
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The European Central Bank (ECB) requires small banks in the euro area to strengthen their reserves to cope with the risks associated with non-performing loans. The measure, reported by Reuters, aims to reduce vulnerabilities in the banking sector, considering the increase in unpaid loans. The ECB aims to bolster financial stability and protect the economy against potential losses.
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