ECB Says European Banks Are Too Optimistic About Macro Risks
- Ukraine war is developing into persistent macro risk: Enria
- Lenders shouldn’t expect low default rates to continue: Enria
This article is for subscribers only.
European banks are not taking looming economic risks seriously enough as they enjoy the revenue-boosting benefits of higher interest rates, a top European Central Bank official said.
There is “a certain reluctance on the side of banks to seriously engage in supervisory discussions” about economic risks, ECB Supervisory Board Chairman Andrea Enria said Tuesday according to prepared remarks for a speech in Vienna. That attitude is unacceptable because “the Russian invasion of Ukraine is developing into a persistent and fully-fledged macroeconomic shock,” which requires supervisors “to exercise extreme caution,” he said.