ECB’s Coene: Liquidity main problem facing Europe’s banks

  • Banks lending to each other less and less
  • Liquidity problems can lead to solvency issues
  • Dexia, KBC still vulnerable; need vigilance
  • “Urgent” that Greek problem solved
  • Demanding capital hikes risks creating vicious debt circle
  • In favour of euro bonds, but only under certain conditions

Coene is Governor of the National Bank of Belgium.

EUR/USD sits becalmed at 1.4265.

Featured Videos