Emergency ECB cash can slow a bank's rescue: Knot

Link: https://www.reuters.com/article/us-ecb-banks-cash/emergency-ecb-cash-can-slow-a-banks-rescue-knot-idUSKCN1C41SC

Date: September 29th,  2017 

Media: REUTERS 

• What happened?

Klaas Knot, President of the Nederlandsche Bank, talked about the consequences of use the Emergency Liquidity Assistance (ELA) that can have the effect of delaying the inevitable.
The new also talk about the situation of the Popular Bank which in June received emergency cash from the Bank of Spain hours before it was declared likely to fail by the European Central Bank and sold to larger rival Santander. 
At the end Knot mention that banks and the Single Resolution Board in Brussels should not always count on the Emergency Liquidity Assistance. 

• Whom and where it affects?

This affects to the Single Resolution Board in Brussels, all banks that have received the Emergency Liquidity Assistance, Central Banks and private banks. 

• What sort of public ir private institutions are involved?

 Single Resolution Board in Brussels and European Central Banks

• Why is it important for Banking and Finance?

Because it considers the economic decisions and policies used, underlying the fact that if they are not effective they can generate uncertainty in the financial and banking sector. 

• What do you think will be the consequences in the foreseeable future?

Among the immediate consequences, is the uncertainty and distrust of economic policies and the validity of the possible aid that the European Central Bank offers, questioned in this way its effectiveness.

Key words: Emergency Liquidity Assistance, European Central Bank, Santander, Popular Bank,  Single Resolution Board