Trichet: Crisis Is Not Over
ECB head Jean Claude "Tricky" Trichet:
"the present significant market correction is not over, Tensions remain, however, at longer maturities in the money market.
The financial market correction triggered a substantial reappraisal of risk by market participants.
Apart from the possible consequences of the credit market turbulence, future risks to the euro area banking system mainly relate to
the possibility of adverse developments in the credit cycle, with negative implications for banks’ asset quality and loan impairment charges.
In addition, the possibility of a disorderly unwinding of global imbalances remains a source of medium-term risk to global financial stability."
"the present significant market correction is not over, Tensions remain, however, at longer maturities in the money market.
The financial market correction triggered a substantial reappraisal of risk by market participants.
Apart from the possible consequences of the credit market turbulence, future risks to the euro area banking system mainly relate to
the possibility of adverse developments in the credit cycle, with negative implications for banks’ asset quality and loan impairment charges.
In addition, the possibility of a disorderly unwinding of global imbalances remains a source of medium-term risk to global financial stability."
Comments