Banks, Macron: Speculative attacks underway but Eurozone fundamentals are solid

Pension reform Macron will speak to the French the former

(Finance) – The French president, Emmanuel Macron, she explained that the banking crises which, starting from the US, are beginning to affect some European banks, such as Credit Suisse And Deutsche Bankare the result of “speculative attacks” on the market. It is necessary to distinguish between speculative behaviours, ei fundamental of the Eurozone banking systemhe added during his press conference at the end of the European Council, “who remain healthy, under solid supervision”, which constitutes a situation “not comparable” with that existing in the US or in other areas.

“During the Eurosummit this morning – Macron declared – we took stock of the situation with the president of the ECB, Christine Lagarde, on the situation of the banking sector outside our borders. The fundamentals of European banks they are solid, and we can rejoice in the needs of ours regulations in the field. We have learned the lesson of past crises, and this means that the Eurozone is today the area in which the banks are the most solid, because they are followed in the most scrupulous manner, with controls on bank solvency and liquidity rates” which have been decided ” following the financial crisis of 2008-2010″.

“This context – he continued – must incite us to accelerate the construction of theBanking union and ofCapital markets unionto have a Eurozone and a European Union that protect the savings” and where banks “are sounder in terms of financing their businesses”. On the other hand, he added, we have “a macroeconomic strategy suited to the context, and for this”, like France, “we support the European Commission’s proposals on economic governance which seem to me to be a key point in this regard”.

By answering a specific question about the risk of contagion of the crisis, given the fall on the stock market of Deutsche Bank, which has already had an initial impact on a large French bank, the Societe GeneralMacron noted: “I think what is happening is quite clear: we are in a very different situation” than what is happening outside the EU “because we have a regulation demanding in the Eurozone, with a large one transparency hey taxi which are closely watched, with needs that are significantly higher than those of the United States and other banks. One of Credit Suisse’s problems, on the other hand, has been exposure to certain US assets as you know.”

“Therefore – underlined the French president – ​​we are not in a comparable situation, the fundamentals are sound. This, on the other hand, has had a cost for the Eurozone in the past, because we have been more demanding with ourselves, and this has weighed on our banking system. “What happens – Macron reiterated – is that there are speculators who are attacking the Credit Default Swaps, who are testing them; and that had an impact on the capital markets“.

“But I believe – concluded Macron – that we need to be able to distinguish between the speculative behavior, the players looking to make money in the short term, and the fundamentals, which remain healthy, under a solid supervision which has shown its robustness in recent years”.

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