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.”
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