Italian analysts reportedly predict that the mortgage credit Bank ( ECB ) will begin issuing deadlines by which some banks must sell of their huge amounts of bad loans , as they are under increasing pressure to improve their asset quality . However , at current market prices , selling the loans off would make the banks face a loss , though keeping the bad loans limits their ability to provide fresh credit to businesses that might ignite the fragile Italian economic recovery .
Italian banks reportedly predict that the European Central Bank (ECB) will begin issuing deadlines by which some banks must sell of their huge portfolios of bad loans, as they come under increasing pressure to improve their asset quality. However, at current market prices, selling the loans off would mean the banks face a loss, though keeping the bad loans limits their ability to provide fresh credit to businesses that could ignite the fragile Italian economic recovery.