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As Banking Worries Swirl, Europe’s Policymakers Express Confidence, With Caution


For a bank, a loss of confidence is a fatal blow. After that occurred at several banks in the United States and Switzerland in the past few weeks, policymakers in the eurozone have been trying to shore up confidence in the region’s banking sector.At a conference in Frankfurt last week, representatives from the European Central Bank spoke confidently of the strength of the financial regulations and the intensity of the banking oversight in the 20-country bloc that uses the euro currency.Still, in the room, there was a wariness about what might happen next, with few convinced that the dust from the recent turmoil had settled.“While the European banking sector is resilient, with strong capital and liquidity positions, in view of recent financial market volatility, we are ready to act,” Christine Lagarde, the president of the European …

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