ECB’s Nowotny Says Credit Crunch Danger ‘Of Course’ Exists

European Central Bank Governing Council member Ewald Nowotny said that the need for banks to raise capital to comply with tougher rules being introduced by the European Banking Authority “of course” holds the danger of a credit crunch.

It is important to avoid such a credit crunch, Nowotny said in a live television interview with Austrian state broadcaster ORF.

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