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13 Mar 2014
ECB's Cœuré: If borrowing costs remain high, the central bank will step in
FXStreet (Łódź) - ECB Governing Council member Benoît Cœuré, who gave a speech today at The Economist’s Future of Banking Summit in Paris, said that the central bank's forward guidance implies that along with a rise in inflation real interest rates for borrowers should decline.
"And we stand ready to act if this scenario does not materialize," Cœuré assured.
The ECB lawmaker said that the asset quality review of Eurozone's financial institutions could help the transmission of monetary policy and “potentially unleash a pent-up monetary easing” if the banks cleaned up their balance sheets in a “good way.”
It could also boost the asset-backed securities market and revive mergers and acquisitions activity in the area.
Furthermore, Cœuré urged EU officials to strike a deal on the Single Resolution Mechanism as soon as possible.
"If we fail to establish the SRM and single resolution fund, bank resolution will remain a national task, resulting in a misalignment of responsibilities, and entrenching the link between banks and sovereigns," he stressed.
"And we stand ready to act if this scenario does not materialize," Cœuré assured.
The ECB lawmaker said that the asset quality review of Eurozone's financial institutions could help the transmission of monetary policy and “potentially unleash a pent-up monetary easing” if the banks cleaned up their balance sheets in a “good way.”
It could also boost the asset-backed securities market and revive mergers and acquisitions activity in the area.
Furthermore, Cœuré urged EU officials to strike a deal on the Single Resolution Mechanism as soon as possible.
"If we fail to establish the SRM and single resolution fund, bank resolution will remain a national task, resulting in a misalignment of responsibilities, and entrenching the link between banks and sovereigns," he stressed.