ECB's Coeure warns of liquidity offered on too easy terms
TOULOUSE, France Oct 3 (Reuters) - Central banks must be wary of offering liquidity on such easy terms that it discourages some euro zone banks from carrying out needed restructuring, ECB Executive Board member Benoit Coeure said on Thursday.
"The resort to central bank liquidity should be expensive, bounded in time, and (address) only emergency situations," he said in prepared remarks for delivery at a conference in Toulouse, southern France.
"This matters particularly in the euro area, where over-reliance on central bank funding, including emergency liquidity assistance, can delay the necessary restructuring and changes in banks' business models," he added. (Reporting by Leigh Thomas, editing by Tom Heneghan)