The strict controls of the ECB protect European banks from contagion

Stress tests, monitoring of solvency ratios and moral suasion on caution in the distribution of dividends: Frankfurt’s vigilance is intense and sometimes pressing, as the bankers complain. But it is actually effective

For days we have heard that Europe is safe from the contagion of the Californian bank crash and also from the Credit Suisse crisis, which yesterday suffered another collapse on the markets, proving that the matter is far from resolved. because its credit institutions are solid and well capitalized, more than the American ones. In fact, that’s only half true. The big US banks, those with assets over 250 billion dollars, are as solid and liquid as and more than the European ones. But this does not apply to regional banks such as Svb. In 2018, under the presidency of Donald Trumpthere was a marked relaxation of the supervisory rules because there was a desire to give the credit system a greater degree of flexibility.