EU leaders discuss the state of the banking sector

The session of the second day of the EU Leaders Summit, held in Brussels with the participation of the heads of state or government of 27 EU member states, began.

The leaders of the countries of the European Union (EU) met to discuss the turmoil in the banking sector that began in the US and later affected Credit Suisse in Switzerland.

The “Euro Summit” is chaired by the President of the European Council, Charles Michel. European Central Bank (ECB) President Christine Lagarde and Eurogroup President Paschal Donohoe are also attending the meeting.

Speaking at the entrance to the meeting, Donohoe said that EU banks can withstand turmoil in the sector thanks to strict regulations.

THE CREDIT SUISSE PANIC HAS HAPPENED

Noting that the EU banking system relies on the amount of liquidity and resilience, Donohoe said that measures taken in the past maintain the stability of the sector.

The leaders will exchange views on the possible effects of bank failures in the US and the banking crisis in Switzerland on the EU.

After the banking crisis that started in the US in recent weeks, there was a panic at Credit Suisse in Europe.

The bankruptcy of Silicon Valley Bank (SVB) and Signature Bank in the US, and the announcement that Saudi National Bank, the largest partner of Swiss bank Credit Suisse, would not increase its capital in Europe, increased uncertainty in the markets.

As the crisis of confidence in the Swiss bank Credit Suisse created shock waves in global financial markets, UBS announced on March 19 that it would buy Credit Suisse for 3 billion francs with the support of the state and the central bank. (AA)