- ECB Buch: Corporate insolvencies are increasing in many countries.
- ECB Buch: Insolvencies were quite low until recently and even fell during the pandemic, also owing to the fiscal support that many firms received.
Frankfurt, Germany — The European Central Bank (ECB) Wednesday released an interview with Claudia Buch, ECB Supervisory Board Chair, who calls for a further strengthening of banks’ balance sheet in the eurozone economies.
“Strengthening bank resilience is a top priority”, Buch’s interview issued in a newsletter is titled. She specifically addressed rising corporate insolvencies as an issue:
Buch is quoted in the interview as follows:
We are seeing an uptick in corporate insolvencies. This is already having an effect on the banking sector, for example through an increase in loans classified as underperforming.