Economic recovery needs bank credit, BoG governor says

14:43 26/9/2014 - Πηγή: E-Typos

Economic recovery without bank credit will be weak, Bank of Greece governor Yannis Stournaras said on Friday.

Addressing a conference in Slovenia, the Greek central banker said that an economic recovery without bank credit would not offer the maximum results as history has shown that in such a case economic

recovery was on average weaker than if bank credit was accompanied.

Stournaras stressed that creation of a banking union would restore confidence in the banking sector and noted that the results of a pan-European stress test would play a vital role in improving confidence in the banking sector. A Banking Union will also contribute in reducing a fragmentation of financial markets, he noted.

"The sooner banks restructure their balance sheets, the easier they will regain confidence among private investors, attracting new capital and offer credit to the economy," the Greek central banker said, while he presented a series of measures aimed to develop Europe's securitised loan market.