Ireland Said to Weigh Allowing Banks to Set Up Asset Warehouse

Irish authorities are considering allowing the country’s debt-laden lenders to set up a company to warehouse more than 60 billion euros ($84.8 billion) of loans that would be wound down or sold over time, according to three people familiar with the matter.

Some banks have sought to convince the central bank and government officials that this would be preferable to splitting their operations into core and non-core units, which is also being weighed, said the people, who declined to be identified because the talks are private. It would need approval from the European Central Bank, which would be the most likely initial provider of funding to a warehouse vehicle, they said.