ECB’s Schnabel: Keeping an eye on pandemic-induced credit crunch

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The European Central Bank (ECB) is watching out for signs of a credit crunch, as banks are hit by the coronavirus pandemic, the board member Isabel Schnabel said on Thursday.

Key quotes

“Markets quite resilient so far despite rising in virus infections.”

“Markets vulnerable to repricing after compression of risk premia.”

“We are monitoring this very carefully, we’re looking at whether this translates into tighter credit standards and lower lending, which could also impair (ECB) policy transmission.”

more to come …

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