IMF: ECB should see if policies can target problem countries

The European Central Bank should look to see if its policies can unclog blocked lending channels and be used to target problem countries, one of the International Monetary Fund's top officials said on Thursday.

"Lending is sluggish and is something the ECB should look at. They have to consider whether their policy tool kit has ways to address either regional or central aspects of the fragmentation," David Lipton, First Deputy Managing Director of the IMF said at an Economist banking conference.

(Reporting by Marc Jones and Huw Jones)