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ECB President Christine Lagarde, in a speech at ESRB, stated that Europe's financial system has avoided the worst-case scenario, but higher funding costs are impacting banks' profitability. She also warned about the potential drastic markdown of EU banks' fixed-income assets and the rise in non-performing loans amid low growth and higher rates. Lagarde emphasized the need for policymakers to be alert to financial stability risks and stay proactive. Additionally, she proposed granting more powers to the EU's securities watchdog to create a European SEC. ECB's Villeroy mentioned that while rate increases overall benefited banks, the pausing of the rate hike cycle was justified, and ECB's policy is now guided by patience and confidence.
ECB President Christine Lagarde proposes granting more powers to the EU's securities watchdog, turning it into the regional equivalent of the SEC https://t.co/QlokwbYm2B
ECB President Christine Lagarde proposes granting more powers to the EU's securities watchdog, turning it into the regional equivalent of the SEC https://t.co/M5TgQlgA86
ECB's Lagarde: Increasing signs that the global economy is fragmenting into competing blocs https://t.co/dHXU2dxYQh
π΄ ECB'S PRESIDENT LAGARDE: THERE ARE INCREASING SIGNS THAT THE GLOBAL ECONOMY IS FRAGMENTING INTO COMPETING BLOCS.
π΄ ECB'S PRESIDENT LAGARDE: A CAPITAL MARKETS UNION IS AN INDISPENSABLE PROJECT. CREATING A EUROPEAN SEC, FOR EXAMPLE BY EXTENDING THE POWERS OF ESMA, COULD BE THE ANSWER.
π΄ ECB'S PRESIDENT LAGARDE SPEECH ON 'A KANTIAN SHIFT FOR THE CAPITAL MARKETS UNION' https://t.co/S4kLN2dvRX
π΄ ECB'S VILLEROY: WE DON'T EXPECT A WIDE DETERIORATION IN BANKS' COST OF RISK IN SHORT OR MEDIUM TERM, BUT WE'RE MONITORING BORROWERS' SOLVENCY.
π΄ ECB'S VILLEROY: PAUSING RATE HIKE CYCLE WAS FULLY JUSTIFIED. ECB POLICY IS NOW GUIDED BY PATIENCE AND CONFIDENCE.
π΄ ECB'S VILLEROY: RATE INCREASES OVERALL BENEFITED BANKS.
π΄ ECB'S PRESIDENT LAGARDE: NON PERFORMING LOANS COULD RISE AMID LOW GROWTH AND HIGHER RATES.
π΄ ECB'S PRESIDENT LAGARDE: IF EU BANKS' HOLDINGS OF FIXED-INCOME ASSETS NEED TO BE SOLD, THEY COULD BE MARKED DOWN DRASTICALLY.
π΄ ECB'S PRESIDENT LAGARDE: HIGHER FUNDING COSTS ARE WEIGHING ON BANKS' PROFITABILITY.
π΄ ECB'S PRESIDENT LAGARDE: POLICYMAKERS NEED TO STAY PROACTIVE.
π΄ ECB'S PRESIDENT LAGARDE: EUROPEβS FINANCIAL SYSTEM AVOIDED WORST-CASE SCENARIO.
π΄ ECB'S PRESIDENT LAGARDE: POLICYMAKERS NEED TO BE ALERT TO FINANCIAL STABILITY RISKS.
π΄ ECB'S PRESIDENT LAGARDE SPEECH AT ESRB. https://t.co/4tXHBuP1K9