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ECB sees no broad financial stability risks in Spain: Constancio
June 14, 2017 / 10:07 AM / 3 months ago

ECB sees no broad financial stability risks in Spain: Constancio

The headquarters of the European Central Bank (ECB) in Frankfurt, Germany June 10, 2017. REUTERS/Ralph Orlowski

ROME (Reuters) - The European Central Bank has no broad financial stability concerns regarding Spain as its recent banking sector turbulence was related to the sudden failure of Banco Popular, ECB Vice President Vitor Constancio said on Wednesday.

“With the economic growth that is ongoing in Spain, I don’t think there are specific risks in the case of Spain,” Constancio told reporters on the sidelines of a conference in Rome.

“The case we just had was a very specific one, which happened also quite quickly... It was a liquidity issue, it was a sort of bank run that occurred during just a few weeks,” he added.

Spanish regulators imposed a short-selling ban on Liberbank (LBK.MC) on Monday to stem what European authorities described as a potential ‘domino effect’ that could have damaged the country’s entire banking system.

Reporting by Isla Binnie; Writing by Balazs Koranyi; Editing by Hugh Lawson

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