The Vice President of the European Central Bank (ECB) Luis de Ginto stated that the bicolor financials markets They must be closely monitored in the midst of the risk of escaping the reductions from control.
Speaking to European Parliament legislators in Brussels on Monday (28.4.2025), he warned that despite the durable banking system in the region, officials can consider anything given. “The recent disturbance of commercial policy has caused the most important turmoil in financial markets after the pandemic,” Louis de Ginto said.
“These developments require careful monitoring. Crust adjustments to financial markets could be made naughty, especially if enhanced by the growing size and influence of non -bank financial institutions, “he added.
The number 2 ECB official spoke the same week that Donald Trump will complete 100 days at the White House, a period of upheaval for shares that has set the S&P 500 orbit for the worst course during the first 100 days of a US president in 1974.
“While eurozone banks have also been influenced, their fundamental sizes remain strong and are well positioned to withstand possible shocks thanks to significant capital reserves and liquidity reserves,” said Guidos, who is a member of the Board of Directors.
Even so, he said there are prolonged threats that officials should take into account in addition to pressure on financial markets.
“Commercial conflicts could create challenges for both households and businesses, translating an increasing credit risk for both banks and non -banks,” he said. “A combination of weaker growth and increased costs for spending could increase pressure on public finances.”
Speaking separately, Board Member Olli Rehn raised a similar issue, saying that officials are watching the situation carefully. “While markets have been able to withstand the recent volatility and work well, we are naturally watching the events closely and we are ready to use all the means necessary to maintain price stability and financial stability,” he said.
In his observations to legislators on the ECB’s annual report for 2024, Gindo reiterated the position of the Central Bank that it depends on the data, would make decisions per meeting and would not be committed to a specific course of interest rates.