Market: For Macron, the euro zone is the region where the banks are the strongest

(BFM Bourse) – Speaking from Brussels, the President of the Republic underlined the solidity of the banks of the monetary union which “scrupulously” respected the solvency and liquidity ratios.

While a resurgence of tensions on banks in Europe is observed this Friday, Emmanuel Macron tries to reassure.

Following in the footsteps of many other leaders, the tenant of the Élysée affirmed the vigor of the sector in the monetary union.

“The euro zone is today the zone where the banks are the most solid” because they followed “in the most scrupulous way” the prudential requirements in terms of solvency and liquidity ratio, said the head of the State during a press conference, following a European summit in Brussels.

Emmanuel Macron thus praised the “solid fundamentals” of the banks and welcomed the “requirements” in terms of banking regulations.

A different Credit Suisse situation

It is this demanding regulation that allows him to assert that the situation for banks in the euro zone is “very different” from that of Credit Suisse, which was taken over by UBS, under pressure from the Swiss authorities.

These requirements “weighed on our banking systems” and were “significantly superior” to those of the United States, for example, underlined the President of the Republic. “One of Credit Suisse’s problems is its exposure to certain US assets,” he said. “We are not in a comparable situation, the fundamentals are sound”, he hammered.

For him, this banking crisis must encourage Europe to accelerate “the construction of the banking union and the capital markets union” and to adopt “a macroeconomic strategy adapted to the context”.

European leaders took stock with Christine Lagarde, President of the European Central Bank, to discuss the banking situation outside Europe, he also said.

No need to be afraid of Deutsche Bank

The President of the Republic spoke while European banks are rocking on the stock market, in particular Deutsche Bank, which lost 12% on the Frankfurt Stock Exchange. As reported by several press agencies, the institution is facing a sharp rise in its CDS (Credit Default Swaps), hedging instruments against the risk of default, a sign of tension on the part of investors.

Emmanuel Macron estimated that this CDS market was under attack by “speculators”. “You have to know how to distinguish between speculative behavior and players who seek to make short-term money” from “fundamentals which remain sound under solid supervision and which have demonstrated their robustness in recent years”, he said. assured.

The German Chancellor, Olaf Scholz, also wanted to reassure, during a press conference held in parallel with that of Emmanuel Macron. “Deutsche Bank has fundamentally modernized its business model. There is nothing to worry about,” he said. “The banking system is stable in Europe,” added the head of the German government.

Julien Marion – ©2023 BFM Bourse

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