Eurozone banks have “very limited” exposure to troubled Swiss bank Credit Suisse, which was acquired by UBS. This was guaranteed by the head of the European Central Bank, Christine Lagarde, before MEPs of the Committee on Economic Affairs of the European Parliament. During the exchange of ideas with parliamentarians, Lagarde repeatedly assured the stability of the Old Continent’s banking system.
“The eurozone banking sector is resilient with strong capital and liquidity positions,” Lagarde said. And in any case, he noted, the ECB is “fully equipped to provide liquidity support to the eurozone’s financial system, if necessary, and to maintain the orderly transmission of monetary policy.”
The former French minister later returned to the new rules introduced after the bankruptcy of Lehman Brothers. “Thanks to the reforms implemented after the global financial crisis, the authorities now have the macro-prudential tools to further strengthen resilience when needed,” said Eurotower number one. But he added that there are “persistent vulnerabilities in the non-bank sector” that require “accelerated regulatory and policy responses for this part of the financial system.”
Lagarde’s assurances became necessary after three American banks (Silicon Valley Bank, Signature Bank, and Silvergate Bank) went bankrupt, followed by the collapse of Switzerland’s Credit Suisse exchange, followed by a bailout from the Swiss government and UBS’s takeover. Despite the closeness between the two cases, Lagarde was keen to clarify that the cases of Silicon Valley Bank and the Swiss bank were “very different”. the same diagnosis”. I welcome the swift action of the Swiss authorities and the decisions they have taken. These steps have been instrumental in normalizing market conditions and ensuring financial stability.”
Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
