Lagarde: Eurozone banks’ exposure to Credit Suisse is in € millions, not billions

European Central Bank President Christine Lagarde told European Parliament’s Committee on Economic and Monetary Affairs on Monday that Eurozone banks’ exposure to Credit Suisse was in Euro millions, not billions.

Key Quotes

The ECB is “fully equipped to provide liquidity support to the euro-area financial system if needed”.

“The European Central Bank doesn’t see any conflict between its inflation-targeting mission and its responsibility to stave off financial-system threats”.

“Price stability goes with financial stability, and they are both present and come together — but there is no trade off,”  

“Financial stability to the extent that it impacts the economic situation, to the extent that it impacts our projections, has an impact on how we see the situation from a macroeconomic point of view, but they are two different stabilities addressed by different tools.”

“Vulnerabilities in the non-bank financial sector could exacerbate volatility and asset price corrections,” Lagarde further noted adding that “Individual financial institutions should carefully preserve their current levels of resilience, to ensure that they could weather a potentially less favorable environment.”