ECB Leans on Banks Seen as Slow in Addressing Property Loan Risk

The European Central Bank is leaning on lenders after finding that they aren’t doing a good enough job of looking for signs of deterioration in their real estate loans.

Banks have been “slow” to re-asses their loans as being riskier, Elizabeth McCaul, a member of the ECB’s Supervisory Board, said at a conference in Frankfurt on Friday. “So we’ve put a lot of emphasis on that.”