ECB, Lagarde reassures the markets: “EU system resilient”
The president of the ECB, Christine Lagarde, reiterated the soundness of the eurozone banking system at the European Council, as fears of another global financial crisis are sending markets plummeting. “The Eurozone banking sector is resilient because it has solid positions in terms of capital and liquidity”, stressed Lagarde in Brussels. Lagarde stressed that the eurozone “after the global financial crisis has applied the regulatory reforms agreed at international level. Recent events – he continued – remind us how important it was to continuously improve these regulatory standards.
“We now need to make progress on completing the Banking Union.” And he added: “Further efforts are also needed to create truly European capital markets“. Then he repeated what he has already said in recent days: “There is no trade-off between price stability and financial stability. Our ‘toolbox’ allows us to face the risks that weigh on both”. As for financial stability, he concluded, “the ECB has the necessary tools to provide liquidity to the financial system in the euro area, if necessary”.
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