EU bank unveils plans allowing lender to KEEP customers’ cash in future crisis

THE European Central Bank has outlined plans to freeze cash deposits of customers at failing banks in order to halt collapses.

A year of European financial crises showed banks needed the ability to buy time to make decisions should they fall into turmoil, according to the ECB’s executive board member Sabine Lautenschlaeger.

Speaking in Frankfurt today, she suggested a ‘moratorium tool’ - which would temporarily freeze all of a bank’s liabilities, potentially including the cash held customers.

The move could mean people with money in their bank accounts could not withdraw anything...
source: Express