Free Trial

MNI BRIEF: Banking Turmoil Could Further Tighten Conditions

(MNI) Rome

Recent tensions in financial markets following the collapse of Silicon Valley Bank and the Credit Suisse takeover could generate additional tightening of financial conditions across the Eurozone, putting downward pressure on economic activity and inflation, Bank of Spain Governor Pablo Hernandez de Cos said Monday.

These factors should be taken into account when the European Central Bank next meeting, underlying that future movements will depend on new data, core inflation and “the intensity of monetary policy transmission,” a factor that is sensitive to tensions in financial markets, Hernandez de Cos said in a speech in Valladolid.

De Cos stressed that financial stability is a “prerequisite” for price stability and recommended to European lenders to carry out a provision and capital planning policy, to allow them to allocate increases in profits to further boost resilience.

MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
True
MNI Rome Bureau | +34-672-478-840 | santi.pinol.ext@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.