2023-03-17 07:19:41 ET
- In an unscheduled meeting of European Central Bank's (ECB) Supervisory Board met on Friday to discuss stress and vulnerabilities in the euro zone bank sector after a recent selloff in bank shares.
- As reported by Reuters, "The Supervisory Board is meeting to exchange views and to provide members with an update on recent developments in the banking sector."
- The meeting comes on the heels of a $30B lifeline for U.S. lender First Republic Bank which eased fears of its approaching collapse.
- Yesterday, the ECB raised interest rates by 50 basis points taking its key rate to 3.5%.
- Meanwhile, the Eurozone inflation rate was confirmed at 8.5% Y/Y in February 2023, the lowest since last May; but well above the ECB's target of 2.0%.
- RBC Capital Markets Karen Jorritsma, head of Australian equities said, "People are concerned that the contagion risk is real, and that rattles confidence. I don’t think we are in the crux of a global financial crisis. Balance sheets are much better than they were in 2008, banks are better regulated."
- ETFs Watch: ( VGK ), ( IEUR ), ( IEV )
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ECB Supervisory board meets to discuss banking vulnerabilities post U.S. banks rescue