ECB Meets Banks to Discuss How Their Loan Books Are Insured

The European Central Bank is trying to get a better idea how banks are insuring their loan books against risks including credit default, and where those ultimately end up in the financial system.

The watchdog held a workshop on Tuesday with a group of lenders as well as officials from the European Insurance and Occupational Pensions Authority to discuss the issue, people familiar with the matter said. They looked at practices such as using insurance products to backstop portfolios as well as procedures to collect information related to those guarantees, the people said, asking to remain anonymous because the meeting ...