Balazs Koranyi

The European Central Bank may need to take on a bigger role in supervising shadow banks as they are now bigger than conventional lenders and may be sitting on elevated risk, the outgoing head of the ECB’s supervision arm told European newspapers.

The European Central Bank has time now to assess how inflation unfolds after a record string of rate hikes but victory has not yet been won and bets based on short term data flow are premature, ECB President Christine Lagarde said on Tuesday.

Low valuations for euro zone bank stocks appear to reflect concerns about credit risk and shareholder payouts, likely weighing on future credit growth via stricter terms for borrowers, the European Central Bank said on Monday.

Germany’s economy will likely shrink again this quarter and its recovery will be arduous, even if there are some signs an improvement could come early next year, the Bundesbank said in a monthly economic report on Monday.

Europe needs a capital markets union, including a single supervisor and trading infrastructure, to finance its digitalisation and green transition, European Central Bank (ECB) President Christine Lagarde said on Friday.

The European Central Bank’s chief supervisor on Thursday supported creating global standards for convertible bonds that were wiped out as part of Credit Suisse’s rescue by rival UBS <a href=“https://www.reuters.com/markets/companies/UBSG.S” target=“_blank”>(UBSG.S)</a> earlier this year.

The Financial Stability Board, a global risk watchdog, plans to issue new liquidity recommendations for some investments funds after bouts of stress in recent years risked spreading over to the broader financial sector, the head of the FSB said on Thursday.

Euro zone economic growth will remain weak in the near term as services and the labour market weaken but nations in the bloc should not free discretionary bank buffers to ease the pain, European Central Bank Vice President Luis de Guindos said.

Euro zone inflation could tick up in the coming months but European Central Bank interest rates held at their current level at least for several quarters could still get price growth back to 2%, ECB President Christine Lagarde said on Friday.

The European Central Bank needs to see further progress in dampening inflationary pressures, and companies along with governments need to chip in to prevent more policy tightening, ECB policymakers said on Wednesday.