The risk of a “systemic” banking crisis in the European Union (EU) is “extremely weak,” despite recent tensions in the sector following the bankruptcy of SVB and the sale of Crédit Suisse, the head of the Federation of German Banks, Christian Schitt, assured on Monday, reports AFP.
“The danger of a systemic crisis similar to the crisis of 2008 is extremely weak,” Christian Scheving, CEO of the first German bank, Deutsche Bank, assured at a press conference.
“Banks in Germany and the European Union (EU) are still extremely reliable” and “very well capitalized and liquid,” he stressed.
The recent collapse of Silicon Valley Bank (SVB) in the United States, which hit the startup sector hard, and Signature Bank, followed by the emergency sale of Credit Suisse, fueled fears of a broader crisis in the banking system.
European financial institutions, especially Deutsche Bank, were hit by the stock market after these events, with investors fearing the spread of the infection.
After the failure, the crisis “had no consequences for EU banks”, assures Christian Sewing.
That’s because “regulators have done a good job of improving bank capital since the 2008 crisis,” especially in the EU, where “regulation is clearly more demanding than in the United States,” he said. appreciated
Under the presidency of Donald Trump, banking regulations in the United States have been reduced, especially those applied to regional banks such as SVB, and have weakened these institutions.
“This weakness did not exist in the EU,” assures Christian Siving.
After weeks of turmoil, observers and markets have regained some confidence in the sector.
Several major US banks reported comfortable results for the first quarter on Friday and seem to have been largely unaffected by the March “waves”.
In the eurozone, the president of the European Central Bank (ECB), Christine Lagarde, who started the fight against inflation through a significant increase in interest rates, assured on Sunday that the situation does not justify, at the moment, a slowdown in this policy.
Source: Hot News
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