Calviño insists on the solidity of European banks to face the bankruptcy of SVB
The First Vice President of the Government and Minister of Economic Affairs, Nadia Calviño, insisted this Tuesday on the strength of the European banking system to deal with the “unique” event of the bankruptcy of the US bank Silicon Valley Bank (SVB), while asking to act with “maximum prudence” and monitor the situation.
“The European Central Bank considers that this is a unique and idiosyncratic event, which European banks have a high level of liquidity and reserves of high-quality assetswhich increases its solidity and confidence at this time”, Calviño declared before the press in Brussels, at the end of a meeting of EU Economy Ministers (Ecofin).
It has also highlighted that US authorities acted “quickly and forcefully” given the “volatility” generated by this situation, which led to the intervention of the SVB, and has also assessed that the EU has a “reinforced framework” for regulation and supervision.
call for prudence
Also Spanish banks show a good liquidity situation in the short term and in the structuralsaid the economic vice president, who in any case has asked to “act with the utmost prudence” and “continue to closely monitor” the situation of the markets.
In this context, Calviño has appealed to the need to move forward to complete the Banking Union with crisis management instruments and deposit guaranteesa challenge that has warned that it will be a “priority” during the rotating presidency of the EU that Spain will assume next July for six months.
In any case, and given the situation of international volatility, Calviño has also pointed out that, although “would not dare to tell the ECB what to do“He expects them to “get it right” in making decisions to “fulfill the double responsibility” of guaranteeing price stability and financial stability.