ECB’s De Guindos: Risks are clearly tilted to the downside
|“Risks are clearly tilted to the downside,” the European Central Bank (ECB) Vice President Luis De Guindos warned on Monday.
Further comments
“News about a potential vaccine fosters hope of a faster return to pre-pandemic growth levels.”
“Economic impact of the pandemic is highly skewed at the sector level.”
“Further actions on NPLs might include guidance on best practices for government-sponsored securitization schemes, or new solutions that would help troubled but viable firms to restructure outstanding debts and raise new equity.“
“A premature withdrawal of loan guarantee schemes may induce banks to tighten credit standards. “
“It will be essential for banks to be willing to make use of the available capital buffers to absorb losses without excessive deleveraging.”
Related reads
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.