Lagarde participated in a summit of EU Heads of State and Government in Brussels in which the Twenty-seven addressed the recent turbulence in the financial markets following the bankruptcies of SVB and other entities in the United States and the bailout of the Swiss Credit Suisse .
Lagarde specifically urged moving forward to complete the banking union – where the main missing element is the European Common Deposit Insurance Scheme (EDIS) – as well as working to create a “genuine” European capital markets union.
In turn, the head of the German government, Olaf Scholz, assured that there was no reason to worry about the solidity of Deutsche Bank.
“Deutsche Bank has modernized and organized its way of working. It is a very profitable bank. There is no reason to worry,” Scholz said at the end of the summit, which, on its second day, included a discussion on the situation of the banking sector.
Scholz stressed that the advantages of “having had strict rules and regulation for several years now are being seen. The banking system is stable in Europe.”
For his part, French President Emmanuel Macron said that “the fundamentals of European banks are solid. The euro area is the region where banks are strongest.”
Lagarde reiterated that the ECB is “fully prepared to provide liquidity to the euro area financial system, if necessary.”
With information from AFP and EFE
