The banking supervisory authority of the European Central Bank (ECB) will hold a special meeting today to discuss the state of the banking industry after the recent turbulence. “The Board of Supervisors meets to exchange views and update members on the latest developments in the banking sector,” a spokeswoman said. A special meeting was held earlier this week.
Bank stocks have recently come under a lot of pressure. First, the collapse of the Silicon Valley Bank (SVB) in the USA sent shock waves through stock markets worldwide. Then the crisis of confidence at Credit Suisse caused bank stocks to plummet again.
According to a person familiar with the deliberations, the purpose of the meeting is to monitor the liquidity situation in the euro zone banking sector. In addition, it should be looked at to what extent any institute is susceptible to a rush to its counters.
decided to raise interest rates
Despite the tremor in the banking sector, the ECB continued its tightening course with another large interest rate hike yesterday at its second interest rate meeting of the year. As in February, the euro watchdogs decided to raise key rates by half a percentage point.
Bank stocks continued their recovery course on the stock market today. A contributing factor was that, in addition to the ailing Swiss bank Credit Suisse, the US regional bank First Republic, which was in distress, also received a support package.
