ECB takes tougher line on shipping loans

[FRANKFURT] The European Central Bank (ECB) is taking a hard line on the controversial issue of how shipping loans should be valued in a wide-ranging review into the health of the eurozone's banks, several sources familiar with the matter said.

The ECB is making sure the eurozone's most important banks have properly valued their assets and have enough capital to withstand future crises so it can begin with a clean sheet when it takes over as their supervisor from Nov 4.

In the past, critics said that national supervisors overlooked or even tolerated warning signs of potential shortfalls at banks for fear of causing upsets.