Europe's leaders battle banking crisis as market rout hangs over Brussels summit
Publishing timestamp: 2023-03-24 10:36:54
Summary
European leaders at an EU summit emphasized the stability and soundness of the region's banking sector following the sudden slide of Deutsche Bank's shares. German Chancellor Olaf Scholz stated that Deutsche Bank is a profitable business with no reasons for concern, while French President Emmanuel Macron and European Central Bank President Christine Lagarde also reassured reporters that the banking system is solid and resilient. The focus on banking turmoil at the summit comes after the recent emergency rescue of Credit Suisse and the collapse of Silicon Valley Bank, as well as concerns about potential contagion to the European banking sector. The EU officials also expressed frustration with the lack of regulatory controls in the United States, where the recent banking turmoil first emerged. The EU is still vulnerable to shocks given its monetary union within the euro area, but lacks fiscal union. The completion of banking union and the creation of truly European capital markets are necessary for further progress.
Sentiment: NEUTRAL
Keywords: deutsche bank ag, economic events, politics, banks, europe news, business news, european central bank, markets, economy, brussels, christine lagarde, emmanuel macron, credit suisse group ag,