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MNI BRIEF: Financial Stability Risks Rising - ECB's De Guindos

(MNI) Frankfurt

Near- and medium-term financial stability risks have risen as a result of increased corporate and sovereign debt levels, stretched valuations in financial and real estate markets, and continued risk-taking by non-banks, European Central Bank Vice President Luis de Guindos said in a speech Monday.

Governing Council members will take such growing vulnerabilities into consideration when making monetary policy decisions, the Executive Board member added. However macroprudential and microprudential policies "remain the first line of defence against the build-up of financial stability risks for the banking system and individual banks, respectively."

De Guindos was speaking two days before the publication of the ECB's latest Financial Stability Review.

MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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MNI London Bureau | +44 20 3983 7894 | luke.heighton@marketnews.com
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