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Lagarde: Credit Suisse Wasn't Indicative Of A Financial Crisis

ECB
Q: Is there a banking crisis? What are you looking at in banking sector?
  • A: We have only one target - 2% medium-term inflation. BLS informs on tightening of credit to economy and what banks expect will be or won't be the tightening. It's a sophisticated survey and it is illustrative of demand.
  • Demand from corporates is really down. This indicates that interest rate policies are beginning to have an impact. Corporates say this is due to interest rates. Not that they don't want to invest.
  • On Credit Suisse, it was addressed very swiftly. Swiss authorities may not have had many choices. Had been lingering for a long time. This is not an indication of a financial crisis. Learning that pecking order of creditors mattered a lot. When this is known it helps.
  • Guindos: Continuously looking at indicators but conclusion for now is banking industry is performing.

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