ECBs Buch is speaking and says:
- Underlining vulnerabilities may not have been exposed.
- There are early signs of deterioration in loan portfolios
- Loans to small firms and firms and sectors such as construction and real estate are deteriorating.
- Banks may overlook important dynamics such as the deposit withdrawals that typically characterize periods of increasing interest rates
This article was written by Greg Michalowski at www.forexlive.com. Source