Noyer says ECB can cope with solvency risks
Solid capitalisation leaves ECB in strong position
Banque de France governor Christian Noyer today outlined the dangers facing central banks from continued balance sheet expansion, but said the European Central Bank (ECB) was well prepared for such challenges.
Speaking in Paris, Noyer flagged five main risks from the recent growth in central bank balance sheets. He noted inflationary pressures had not materialised, but suggested the "quasi-fiscal" element of asset purchases could compromise central banks' independence.
Solvency risk was another
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