Italy’s Economy Minister Fabrizio Saccomanni said on Tuesday that public intervention on troubled banks should come after inflicting losses on bondholders through a minimum bail-in of 8 percent of total bank liabilities.
Yet, Saccomanni the introduction of bail-in clauses may spread risks across the euro zone banking sector.
“In case of a systemic crisis, public intervention would be preferable to the risk of contagion generated by an extended use of bail-in (clauses),” Saccomanni said speaking at a meeting of European Union finance ministers in Brussels.
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