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Lagarde/Guindos: Europe's Banks Not Like California's

ECB

Q: Is the unusualness of recent developments reason to think twice about future rate increases? Is there something fundamentally different in Europe which means that banks are less vulnerable?

  • A1: I would reiterate our confidence in the banking sector given the strong capital and liquidity positions. We are monitoring the market tensions and stand ready to use any of our tools if needed. The decision we have taken is justified by the circumstances and robust.
  • A2: Banks operate within the framework of Basel III. In Europe we have strong supervision, strong capital and solid liquidity positions. Exposures are not concentrated. We don’t have similar occurrences as in California.
  • Guindos: The model of Silicon Valley Bank was quite unique. There was an asset-liability mismatch.

Q: Did you discuss an increase in the level of reduction in asset purchases?

  • A: No, we did not discuss.
Press conference concludes

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