Last week, the European Commission and the European Central Bank (ECB) announced new rules on how banks should treat dud loans. The good news is that the changes will help make European banks more resilient in the future. The bad news is that the euro zone banking system remains insufficiently equipped to deal with a new crisis. European banks are ...

Kumar Mangalam Birla just treated India’s new bankruptcy law with utter disdain. But before you dismiss this as yet another instance of a billionaire behaving badly, think of the huge favour he’s doing the legal system. Normally, Birla’s 72.7 billion rupee ($1.1 billion) offer to Binani Industries Ltd. for its 98.4 percent stake in Binani Cement would be unremarkable. Birla’s ...

Without a doubt, the European Central Bank is the euro zone’s most powerful policy-making institution: It sets monetary policy for 19 member states and supervises the bloc’s most important lenders. Even so, the failure of a Latvian bank shows that the ECB doesn’t have all the powers it needs. Gaps remain, and they put Europe’s financial system at risk. At ...