ECB’s Lagarde: Cannot Be Complacent About Financial Stability Risks
16 November 2023
By Isabel Teles – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Thursday said that it would be inappropriate to be triumphant about having avoided risks to financial stability just because some of these hadn’t yet fully materialised.
In opening remarks at the annual conference of the European Systemic Risk Board (ESRB), a text of which was posted to the website of the ECB, Lagarde said that despite the fact that some of the risks the ESRB warned about had only partially manifested, ‘[i]t would be unwise to be complacent’.
Other risks, though not yet emerged, were lurking, she warned. The Board would ‘continue to monitor developments carefully’, she said.
‘To date, Europe’s financial system has avoided the worst-case scenario of severe systemic risks materialising at the same time’, she said. ‘But policymakers need to remain proactive and alert to financial stability risks as and when they arise.’