FRANKFURT (MNI) – Fixing banks balance sheets is key for an ongoing
recovery, European Central Bank Vice-President Vitor Constancio said on
Friday.
“Repairing balance sheets of banks and making banks more resilient
is a crucial prerequisite for the resumption of growth and for financing
the reallocation of resources from the non-traded to the traded
sectors,” Constancio said.
“Many policy initiatives have already been taken in this respect,
ranging from the establishment of “bad banks” to injections of capital
and government guarantees’ for bank debt,” he said.
More is in the cards now with the Eurozone undergoing banking
stress tests and policymakers assuring that national governments stand
ready to meet any recapitalization needs.
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-Frankfurt bureau tel.: +49-69-720142. Email: jtreeck@marketnews.com
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