Yesterday, European Central Bank supervisor Daniele Nouy, who heads the central bank's oversight of European lenders, told a conference in Frankfurt that the Bank will continue to be "tough and intrusive" towards its charges and warned that it will use "all the tools that we have developed in recent years".
"We will also take a close look at remuneration schemes to see whether they are conducive to the sound and prudent management of banks," Nouy added.
European banks are sitting on pile of bad debts worth more than $1 trillion and, according to Consultancy.eu, are writing them off at a far slower pace than their American counterparts.
"As Europe and its economy regain strength, Europe must seize the momentum and accelerate the reduction of (bad loans)," Commission Vice President Valdis Dombrovskis said last week. "This is essential to further reduce risks in the European banking sector and strengthen its resilience."
