The European Central Bank says the banking sector could withstand a severe economic downturn without depleting their financial buffers against losses.
The sun sets next to the European Central Bank in Frankfurt, Germany, Monday, July 24, 2023. The European Central Bank is set to raise interest rates again Thursday. Economists are saying it could be the last hike in a rapid-fire series that started a year ago.
The ECB took over supervision of the biggest banks after the eurozone debt crisis more than a decade ago, when bank losses led to heavy bailout costs for governments. National supervisors were perceived to have been less than vigilant on developing risks.
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