The European Union's levels of security of its banking system have been sufficient so far, but the bloc should be prepared for all possible scenarios on issues related to the banking sector in the light of US banks collapsing, Belgian Prime Minister Alexander De Croo said on Friday
MOSCOW (Pakistan Point News / Sputnik - 24th March, 2023) The European Union's levels of security of its banking system have been sufficient so far, but the bloc should be prepared for all possible scenarios on issues related to the banking sector in the light of US banks collapsing, Belgian Prime Minister Alexander De Croo said on Friday.
"For the moment, the assessment is that the levels of security and the levels of capital and liquidity that we have are sufficient, we monitor that really closely almost on a daily basis because no one knows what can happen, but we try to be as prepared as possible," De Croo said ahead of the second day of the European Council meeting in Brussels.
The prime minister also said that the EU does not see any "reason to be worried" now, adding, however, that nobody could predict the scenario that happened to the Silicon Valley Bank and the Credit Suisse investment banking company.
On March 10, US federal regulators closed SVB, the largest US bank to collapse since the 2008 financial crisis and the second largest implosion in the country's history. Later that week, the New York-based Signature Bank was seized in the third largest bank collapse in US history. Both lenders, which catered largely to the tech sector, became victims of a bank run.
The US bank collapses were followed by Credit Suisse's share price plunging nearly 30%, sparking concerns about a liquidity crunch.
