Portugal’s banks that part financed the rescue of BES through their enforced contributions to the Resolution Fund want to be involved in any decisions relating to the sale of ‘good bank’ Novo Banco.
Monitoring can be achieved through the creation of a committee that will allow Portuguese banks that fare exposed to risk due to the bailout of BES to have the inside track on any decisions over Novo Banco’s sale which already is being set up by the Bank of Portugal (pictured).
The idea has been delivered to Carlos Costa at the Bank of Portugal, the governor who decided to rescue BES by using the resources of the Resolution Fund but Costa has not yet responded to the idea which he may find somewhat inconvenient.
Portugal’s banks are intent that the sale of Novo Banco reaches at least a level that will cover the €4.9 billion injected from the Resolution Fund which they funded.
The quick sale of Novo Banco has been advocated by the banks and the process is already underway with BNP Paribas advising the Bank of Portugal.
