FRANKFURT, Jan 27 (Reuters) - The European Central Bank said on Tuesday it was changing guidelines to allow it to lend to banks that are being wound down, tackling a long-standing issue in the European Union's framework for handling bank failures.
The ECB said banks that are in resolution would now be given access to the central bank's liquidity provision "provided they meet certain conditions", such as having enough capital.
A 2017 run on Spain's Banco Popular exposed a hole in EU rules that bar the ECB, the euro zone's central bank, from supporting a failing lender while the EU's Single Resolution Board organises a rescue.
It was one of just two cases in which the EU's decade-old resolution framework has been applied, the other being the resolution of some European units of Russia's Sberbank following sanctions against Russia in 2022.
Reporting by Francesco Canepa Editing by Peter Graff
Source: Reuters