Bank of Spain and ECB monitor impact of new U.S. tariffs
Investing.com -- The Bank of Spain’s head of supervision, Mercedes Olano, stated that it’s still premature to gauge the effects of the recently imposed U.S. tariffs. She added that European supervisors are consistently observing the situation, and as of now, no impact on the liquidity of European lenders has been detected.
Olano mentioned in a news briefing that there is a high degree of uncertainty, and vigilance is being maintained by all supervisors, including those from the Single Supervisory Mechanism (SSM), the Bank of Spain, and other European bodies. They are continuously assessing the potential effects that the various tariffs could have on the global financial system. She also noted that no liquidity issues have been identified in the short to medium term.
In addition, it has been reported by three sources that the European Central Bank (ECB) has heightened its monitoring of euro zone banks and bond markets. This comes amid a rout in global stocks driven by the ongoing trade war. However, the ECB has not found any cause for concern at this point.
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