By Simon Marks
BRUSSELS (MNI) - Elke Konig, the Chair of the Single Resolution Board, the
EU's chief resolution authority, has said new EU bail-in rules provide for some
leeway for states looking to recapitalize their banking sector.
Her comments come as the Italian government has entered into talks with the
European Commission about how to recapitalize its banking sector once stress
test results uncovering capital shortfalls are revealed at the end of the month.
"For me it's pretty clear that the BRRD and the SRM rules are a solid
framework, which has been agreed upon internationally," Konig said referring to
the Bank Recovery and Resolution Directive, the EU's law on how to resolve
failing lenders, and the Single Resolution Mechanism, the EU system for