(Updated with source, details)
FRANKFURT, March 17 (Reuters) –
European Central Bank supervisors meeting on Friday saw no contagion to eurozone banks of market turmoil following the troubles at Credit Suisse and several U.S. banks, a source told Reuters.
Investors worried about the risk of a new banking crisis after the collapse of Silicon Valley Bank last week in the United States, followed by emergency measures in favor of Credit Suisse and First Republic Bank, a bank American regional.
The source, familiar with the program of the unscheduled meeting of the Prudential Supervisory Board, said supervisors were told that deposits remained stable at eurozone banks and exposure to Credit Suisse was negligible.
An ECB spokesman declined to comment.
Eurozone banks still have excess liquidity totaling 4 trillion, which they are even keen to return to the ECB now that borrowing from it has become more expensive, as shown data released Friday.
Credit Suisse received a loan of 50 billion Swiss francs from the Swiss central bank, which eased tensions in the markets and encouraged the ECB to raise rates by half a point more on Thursday.
Several major US banks have flown to the rescue of
First Republic Bank
by announcing that they were going to inject 30 billion dollars into its funds to avoid a domino effect after the sudden fall of SVB and Signature. (Francesco Canepa, French version Laetitia Volga, edited by Blandine Hénault and Kate Entringer)
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