⁍ Euro zone financial stability risks are on the rise due to a surge in debt levels.
⁍ But the bank sector has ample buffers to absorb losses while continuing to lend, ECB President Christine Lagarde said.
⁍ She added that the ECB remained ready to ease policy further if needed.
– Christine Lagarde, head of the European Central Bank, told the IMF’s International Monetary and Financial Committee today that the euro-zone economy will “continue to be supported by very accommodative monetary and fiscal policies along with an expected gradual resumption in global activity,” Reuters reports. “We continue to stand ready to adjust all of our instruments, as appropriate.” Lagarde also said that the ECB was ready to ease policy further if needed. “The euro area financial stability risks are on the rise due to a surge in debt levels but the bank sector has ample buffers to absorb losses while continuing to lend,” she said.
Source: https://www.reuters.com/article/us-ecb-policy-lagarde/euro-zone-banks-can-absorb-losses-from-crisis-lagarde-idUSKBN270251