Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
ECB supervisors see no contagion to euro zone from bank turmoil, source says
© Reuters. FILE PHOTO: A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. REUTERS/Heiko Becker/File Photo
FRANKFURT (Reuters) - European Central Bank supervisors meeting on Friday saw no contagion to euro zone banks from the market turmoil that has engulfed Credit Suisse and some U.S. lenders, a source said.
Investors have been fretting about the risk of a new banking crisis after the collapse of Silicon Valley Bank last week, followed this week by emergency lifelines being thrown to Switzerland's Credit Suisse and San Francisco-based First Republic Bank (NYSE:FRC).
But the source, familiar with the content of the unscheduled meeting of the Single Supervisory Board, told Reuters that supervisors were told deposits remained stable across euro zone banks and exposure to Credit Suisse was immaterial.
An ECB spokesperson declined to comment.
Euro zone banks are still sitting on some 4 trillion euros ($4.25 trillion) worth of excess liquidity, which they are even keen to hand back to the ECB now that borrowing from it has become more expensive, as central bank data showed on Friday.
By contrast, Credit Suisse tapped an emergency lifeline worth 50 billion Swiss franc ($54 billion) from its central bank on Thursday.
The Swiss rescue calmed markets and emboldened the ECB to raise interest rates by another half-a-percentage point on Thursday, confounding traders' bets and sticking to its inflation-fighting efforts.
Large U.S. banks injected funds into First Republic Bank later the same day, swooping in to rescue the lender caught up in a widening crisis triggered by the collapse of two other mid-size U.S. lenders over the past week. ($1 = 0.9401 euros)
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.