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Interview with Philip R. Lane, Member of the Executive Board of the ECB, conducted by Gregory Savva on 5 April
6 April 2023
We’ve seen some recent banking failures in regional banks in the United States, which − along with the turmoil caused by Credit Suisse − have created some concerns for depositors and investors alike. Do you think there is a risk of these limited shocks turning into something systemic?
I think it’s important for everyone to understand the differences between the euro area, Switzerland and the US banking system. In the euro area we’ve had a very significant focus on making sure that the banks have high capital and liquidity ratios, that they are supervised in a strict way by the European Central Bank. For these reasons − and also because we see that the European economy is performing relatively well and is expected to grow by around 1% this year − and under these conditions, of course, we look carefully, but our assessment is that the euro area…