ECB can suspend payment to bank creditors before resolution: Nouy

FRANKFURT (Reuters) - The European Central Bank has the power to suspend a bank's payments to creditors if that institution is about to be resolved or liquidated, the ECB's supervisory chief said in a letter on Friday, responding to questions about Greek banks.

"The ECB could consider making use of such measures...to temporarily suspend payments to creditors by the bank in question, in anticipation of the start of liquidation or resolution proceedings," Danièle Nouy, chair of the ECB's bank supervisory board, said in the letter, addressed to a member of the European parliament.

(Reporting By Francesco Canepa; editing by John O'Donnell)

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