The president of the European Central Bank (ECB), Christine Lagarde, reiterated this Monday in Brussels, before the European Parliament (EP), that the institution is prepared to intervene, “if necessary”, to preserve the financial stability of the euro zone , in light of recent “tensions”.
In a debate, the so-called “economic dialogue”, with the Parliamentary Committee on Economic and Monetary Affairs of the EP, and in the part of his intervention dedicated to the most recent evolution of the financial market, shaken by the collapse of the North American bank Silicon Valley Bank (SVB) and the sharp drop in the Credit Suisse stock market, Lagarde hailed “the quick action and decisions taken by the Swiss authorities” regarding the Swiss bank.
“These actions were essential to restore orderly market conditions and ensure financial stability,” he commented, assuring that the ECB continues to “closely follow market developments” and is ready “to respond as necessary to preserve price stability. and financial stability in the eurozone”. .
Assuring once again that “the eurozone banking sector is resilient, with strong capital and liquidity positions,” the French official stressed that “in any case, the ECB’s policy toolkit is fully equipped to provide of liquidity to the eurozone financial system”. , if necessary, and to preserve the good transmission of monetary policy”.
“Regarding financial stability, we have all the tools that will be necessary, that will eventually be necessary, to face the tensions,” he reinforced, adding, already in the question phase of the MEPs, that if, by chance, As these tools prove insufficient, the ECB would be able to “provide the necessary adjustments or recalibrations to deal with any liquidity risk” that appears on the horizon.
The president of Switzerland, Alain Berset, announced this Sunday that the Swiss banking group UBS will buy Credit Suisse, considering that it is the best way to “restore confidence”.
Credit Suisse went through a turbulent week, having lost more than 25% of its stock value. On Thursday it became the first major bank globally to receive emergency public assistance since the 2008 financial crisis.
The negotiations that culminated in this operation involved, in addition to the two banks, the Swiss government and the central bank.
Source: TSF
