(Adds details, background)By Silvia AloisiMILAN, Oct 10 (Reuters) - The head of the European parliament has challenged the European Central Bank over how new guidelines for bank bad loans are being set, escalating a row between Italy and the ECB over the proposed measures. Italian bank shares fell for a fifth straight day on Tuesday following a string of analyst reports warning the country's lenders would be hit by the new measures. Tajani urged Draghi to involve the European parliament in the process to avert an institutional clash. The European parliament does not have a role in banking supervision decisions, although it can ask the ECB for information. Draghi, who like Nouy often appears before the European Parliament, regularly invokes the separation principle when asked about SSM matters.

Source: Times of India October 10, 2017 09:11 UTC