ECB is carefully observing the present-day market concerns. ECB vice-president Luis de Guindos said in an address on Saturday. The euro area’s price and financial security are priorities for the bank.
ECB vice president warns of hidden potential risks
The ECB is keeping an eye on the financial sector’s broad risks. According to vice president Luis de Guindos. It will take steps to keep the eurozone stable. in the banking sector of the area of the (Euro) currency. De Guindos promised that banks had solid liquidity and capital orientations.
De Guindos stated, “In our opinion, weakness in the financial system predominate in the non-bank sector of finance” in his address to the Ambrosetti business forum in northern Italy. That grew quickly and made it more willing to take risks in exchange for low-interest rates.
ECB It was crucial to apply changes to address these holes.
Strategies that reduce cash spread and limit playing under influence. These are just a few examples of the goals that need to be set to control rising costs. Among these is to increase the capacity of many organizations for liquid assets.
The ECB has caused rates to increase. and there are worries that this is usually leading to instability in the commercial sectors. The rising costs, wages, and profits could all work together to raise inflation, he stated.
