Banks in the euro zone will have to raise provisions to cope with economic slowdown
Reuters
Published Sep 26, 2022 04:01AM ET
Updated Sep 26, 2022 04:11AM ET
MADRID (Reuters) - Banks in the euro zone will have to raise provisions to cope with the consequences of the economic slowdown due to the fallout from Russia's war in Ukraine, ECB Vice-president Luis De Guindos said on Monday.
"The economic slowdown will lead to a potential increase in insolvencies (...) we are already trying to get the banks to bring forward their plans because it is going to have an impact without a doubt," De Guindos said.
"Let's not be blinded by the short term effect, banks will have to increase provisions," he added, recognizing a short-term boost for banks from higher interest rates.
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Written By: Reuters
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