ECB allows loans to troubled banks

16:36 - 27.01.2026


January 27, Fineko/abc.az. The European Central Bank (ECB) has amended documents that previously prevented it from lending to banks in the process of restructuring.

ABC.AZ reports that banks that are unable to meet their obligations in full will now have access to ECB's liquidity "subject to certain conditions", in particular, requirements for equity adequacy, the regulator said in a press release.

The changes will take effect on March 30, 2026.

The agency believes that the decision of the European regulator can finally close the gap in banking regulation, which was discovered several years ago during the restructuring of the Spanish Banco Popular. The problem appeared against the background of the massive withdrawal of deposits from the bank, when the ECB was unable to support the credit institution.