{"id":65175,"date":"2023-03-16T08:07:20","date_gmt":"2023-03-16T13:07:20","guid":{"rendered":"https:\/\/olduvai.ca\/?p=65175"},"modified":"2023-03-16T08:07:20","modified_gmt":"2023-03-16T13:07:20","slug":"some-eu-banks-may-be-vulnerable-ecb-tells-ministers-no-room-for-complcency","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=65175","title":{"rendered":"‘Some EU Banks May Be Vulnerable’ – ECB Tells Ministers ‘No Room For Complcency’"},"content":{"rendered":"
\n

‘Some EU Banks May Be Vulnerable’ – ECB Tells Ministers ‘No Room For Complcency’<\/a><\/h3>\n<\/header>\n
\n
\n

The world was saved there briefly overnight after SNB’s giant liquidity shot into CS.<\/p>\n

But it didn’t take long fort reality to sink in about the band-aid-like nature of this facility.<\/p>\n

However, the situation under the hood may in fact be worse than some thought as Bloomberg reports, according to people familiar with the talks, that ECB Vice President\u00a0Luis de Guindos\u00a0told finance ministers on Tuesday that\u00a0some European Union banks could be vulnerable to rising interest rates<\/strong>.<\/p>\n

Guindos said that the ECB couldn\u2019t rule out that some lenders might be\u00a0at risk because of their business models<\/strong>, according to the people.<\/p>\n

The market did not like that reality check<\/strong>\u00a0with European IG credit spreads now above yesterday’s highs…<\/p>\n

\"\"<\/picture><\/a><\/p>\n

Guindos also\u00a0cautioned not to be complacent and warned that a lack of confidence could trigger contagion<\/strong>.<\/p>\n

Touching on a likely key theme of\u00a0Thursday\u2019s rate decision, Guindos highlighted the\u00a0potential conflict between the ECB\u2019s mission to bring down inflation and potential damage to some financial institutions<\/strong>\u00a0from higher interest rates.<\/p>\n

And after that headline on bank vulnerability, the odds of a 50bps hike today have tumbled…<\/p>\n

\"\"<\/picture><\/a><\/p>\n

What will Christine do?<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

‘Some EU Banks May Be Vulnerable’ – ECB Tells Ministers ‘No Room For Complcency’ The world was saved there briefly overnight after SNB’s giant liquidity shot into CS. But it didn’t take long fort reality to sink in about the band-aid-like nature of this facility. However, the situation under the hood may in fact be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4513,233,33783,282,284,2701,1555,4318],"class_list":["post-65175","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit-suisse","tag-ecb","tag-eu-banks","tag-european-central-bank","tag-european-union","tag-snb","tag-swiss-national-bank","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65175"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65175\/revisions"}],"predecessor-version":[{"id":65176,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65175\/revisions\/65176"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}