MNI BRIEF: ECB Buch Warns On Protectionism And Credit Risks
MNI (BRUSSELS) - Protectionist tendencies could undermine firms' financial resilience and heighten credit risks, the Chair of the Supervisory Board of the ECB Claudia Buch warned Monday, warning the European Parliament ECON Committee of possible disrupted essential global supply chains with negative impact on firms' financial resilience and thereby also their credit risks".
Buch also warned of the risks of a sudden change in market sentiment.
"European banks are operating in a macroeconomic environment characterised by moderate growth and considerable uncertainty. So we are seeing a gradual recovery in economic activity and expectations of further monetary policy easing so that has led to a relatively benign risk pricing in financial markets with a risk of a sudden shift in market sentiment," she continued.