London (MNI) – Bank of England Governor Mervyn King all but
confirmed that he views the euro zone sovereign debt crisis as the
biggest risk to the European Union’s financial system.
Speaking in his capacity as vice-chairman of the European Systemic
Risk Board, King said:
“I think it’s pretty obvious what the most serious risk is.”
The press conference had been dominated by comments about the
gravity of the Greek situation as well as questions about the crisis.
King’s comments followed earlier comments from European Central
Bank President and ESRB Chair Jean-Claude Trichet’s in which Trichet
said that the euro zone sovereign debt crisis represents the most
immediate risk to financial stability.
King also said that the ESRB would be looking into a number of
issues concerning financial stability in the EU. Among the latter were
“the issue of re-emerging global imbalances and asset price imbalances
in the commodities market”.
He declined to comment on UK monetary policy, stressing the strict
separation of his role of BOE governor and ESRB vice chairman.
–London newsroom 00 44 20 7 862 7492; email: ukeditorial@marketnews.com
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