ECB’s Lagarde: Fight Against Inflation Facilitated by Banking Supervision

30 November 2023

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Thursday said that monetary policy had benefited from banking supervision in the recent challenging context.

In a speech at a conference at the ECB, according to a text provided, Lagarde said, ‘European banking supervision has not only empowered our monetary policy response to the pandemic, but also facilitated our fight against inflation by readying banks for the new environment.’

European supervisors had diligently supported banking sector efforts to adapt business models, which had ‘enabled them [banks] to face the rate reversal on a solid footing’, she said.

‘The conclusion is clear: single supervision has complemented the single monetary policy – just as theory predicted it would’, she said.