January 29, 2024 14:05 GMT
MNI BRIEF: ECB's Guindos Sees Bank Asset Quality Deterioration
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European banks are going to see a deterioration in the quality of their assets as Stage 2 delincuencieshave increased “significantly in recent months,” European Central Bank’s Vice President Luis de Guindos said Monday.
Banks repricing of assets ia always faster when interest rates go up but it is already translating into liabilities, he told an event in Madrid, adding that lenders’ margins are stabilizing and should deteriorate in the coming months, a reason to defend prudent policies.
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