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ECB: De Guindos: ECB Not Yet Identified Banks at Risk of Liquidity Difficulties

ECB

Q: Are you concerned about ongoing liquidity tightening, which may prompt banks to increase lending rates? Could this scenario mean the ECB is more aggressive with its monetary easing?

A: On liquidity: This is something that we follow very closely. On average, the situation is quite calm. We have not identified "tail banks" that might have difficulties in terms of liquidity.
•    Perhaps because markets likely believe that this improvement in profitability will not be sustainable. Why? European growth is low. There will be an increase in non-performing loans (though from a very low level). The lack of a complete banking union in Europe. More competition for liquidity.

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