New warning from the European Central Bank (ECB) to banks in the euro zone. Vice President Luis de Guindos argued this Wednesday that the status of units on the continent is as follows: “very different” A few weeks ago that caused the downfall of American Silicon Valley Bank and Signature Bank and Swiss Credit Suisse, but warned European bankers not to let their guard down. “ banking is good but without peace of mind“, stressed during an action by the Association for the Advancement of Management (APD) in Madrid.
“Is there a corruption important market sentimentIt was seen in the prices of European banks. It was not a trivial process and therefore European banks should remain aware of this deterioration in the market situation. replayable in the future, in a macroeconomic context that will not be easy. You can’t be indifferent, you have to attention with levels capital city -and we’ll be transmitting more signals about it each time- and with levels liquidity demanded the European bank”, the former Minister of Economy of the Mariano Rajoy Governments.
Guindos likewise warned that financial turmoil would spell disaster. credit tightening will cause Low economic growth and inflation. “Banks will look much more closely at liquidity, consider capital more as a key element to face possible deterioration in the market situation, and this tightening financing conditions “It will affect consumption and investment in Europe, which will ultimately have an impact on economic growth and inflation,” he said.
sticky inflation
The two numbers of the ECB are likewise reserved for European banks. “Much better than 15 years ago”referring to the previous crisis, “the world has also changed a lot and bank panic (‘bank run’) can be speed up with one click‘ is a ‘new issue’ that officials consider. In any case, the capital position of European banks “Average good” He argued that the increase in interest rates had a positive net effect, since the improvement in revenues was greater than the losses in the public revenue portfolio.
Guindos, on the other hand, issued warnings despite the decline. inflation generally, underlying proves (without energy or food) “much more sticky and some speedup” (5.7% in March). “We believe headline inflation will continue to be moderate, but we are not that optimistic He admitted that it is “basic”. He stated that it is “fundamental” in this sense. avoid a price spiralwages and job margins,” he said. He pointed out that the latter increased more than unit labor costs last year, but the opposite is likely to happen this year due to the economic slowdown and average wage demands are around 5%.