A selloff in financial markets may have been overdone, German Finance Minister Wolfgang Schaeuble said Thursday as euro-area finance ministers tried to tamp down concern global equities are poised to enter a bear market.
“We will surely get a report from the ECB and the banking supervisors, but I think this is also market exaggerations to some degree,” said Schaeuble, before a meeting in Brussels Thursday. “The question is how we can ensure a stable, sustainable development in view of the volatilities in the world economy, from oil prices to the concerns in financial markets.”
European banking stocks have lost 9.7 percent so far this week as investors worried about capital and funding levels. Schaeuble joined colleagues including Finland’s Alexander Stubb in trying to alleviate panic. Schaeuble earlier this week said he had “no concerns” about Deutsche Bank AG, his country’s biggest lender, despite a battering of the stock and a surge in the cost of protecting the company’s debt against default.
“I believe that in the eurozone, structurally, we are in a much better place than we were in some years ago, and that also goes for our banks,” Eurogroup head Jeroen Dijsselbloem said before the meeting. Dijsselbloem is also the Dutch finance minister.