HE Supervisory Board European Central Bank (AMB) huh discarded Euro zone banks took a hit this Friday. infection of this week’s banking storm tank leaks and her exposure to Credit Suisse least. This was confirmed by sources familiar with the meeting held by the ECB’s space dedicated to the oversight of banks, an extraordinary meeting to analyze situation A large part of the industry after the earthquake caused by the crises of Swiss Credit Suisse and American Silicon Valley Bank (SVB), Signature Bank and First Republic Bank.
“Board of Directors meeting” exchanging impressions and update members recent events In the banking sector,” after the news reported by ‘Reuters’, the spokesperson of the institution was content to confirm himself. It is a one-themed meeting type and it is off the agenda. very common At the board chaired by Andrea Enria extraordinary situations of surge and voltage.
In fact, the heads of banking supervision in the Eurozone, including the Deputy Governor of the Bank of Spain, Daisy Delgado– they have already met earlier this weekAs Russia did many times when it invaded Ukraine a little over a year ago.
During the short meeting, views were exchanged on the situation. dialogue and presentations on the evolution of markets and banks. The supervisory board, through the national central banks, information collected in recent days status of banks and exposure fallen beings, usually very small Because US banks are regional, Credit Suisse has been in serious trouble for two years, giving the rest of the industry time to recover. disconnect with the Swiss establishment.
Informative rather than decision-making
Due to the nature of the meeting, he did not leave as usual. no explanation or decision. Especially when there is a meeting of the highest body of the ECB this Thursday, government councilhaving the power to make monetary policy decisions (such as these) rate increases) as well as other more powerful measures that the central bank has in its arsenal, such as approval extraordinary liquidity lines.
Despite the financial turmoil, the governing council brought up the issue. 0.5 point odds as planned but also wanted to send a reassuring message about the banking situation. Thus, he reassured that he had “made it”.careful follow-up current tensions in the markets” and “ready to answer “as needed” to maintain price and financial stability.
“Eurozone banking sector, resistance capacity and positions capital city And solid liquidity. In any case, the ECB has all the necessary monetary policy tools. provide liquidity support to the eurozone’s financial system if necessary and maintain the smooth transmission of monetary policy”, vowing to remove organizations’ fear of crisis due to deposit leaks.
stretch
California’s Fall Silicon Valley Bank Last week’s Thursday this week caused some shock waves in stocks rocking wednesday for years battered Credit Suisse It caused the prices of Helvetic and world banks to tremble. The European Central Bank supervisors meeting comes hours after the meeting. major american banks Come to the aid of the Californians First Republic Bankthat they have invested 28,200 million Euros to strengthen their liquidity.
The previous day, Credit Suisse asked Swiss National Bank also a liquidity line worth around 50,000 million euros. Thursday’s data showed that US banks had in recent days enlarged the central bank’s balance sheet after months of contraction, demanding record amounts of emergency liquidity from the Federal Reserve.