“I very much doubt that it can be nationalised under the current laws. Even as a transition bank there would have to be a resolution. This brings problems unless there was a political negotiation and that for reasons of national interest, it would be able to get a waiver regarding the obligation to sell [Novo Banco]”, he explained in an interview with business daily Jornal de Negócios.
Faria de Oliveira said the financial system needed strengthening and to do that a solution would have to be found for Novo Banco and, if it is bought, the buyer would have to “give all the reputational guarantees of soundness and management capacity”.
“The costs for the system should be as low as possible to avoid that Novo Banco competitors are called to subsidise it”, he said.
Top banker in favour of nationalising Novo Banco
By TPN/Lusa, in Business · 12 May 2016, 13:15 · 0 Comments