Representatives from national banks and supervisory authorities in the euro area on Monday stressed the resilience of the bloc's banking system in the face of the current crisis.

 

At the opening conference of the Euro Finance Week trade show in Frankfurt, chair of the supervisory board of the European Central Bank (ECB) Andrea Enria said that the banking industry may come under increased pressure as a result of the economic crisis, the incredibly quick shift toward higher interest rates and the rising danger of loan defaults.

 

Although the situation is currently positive, caution is advised when looking ahead, Enria added.

 

Enria's positive assessment of the euro area's banking sector was shared by Joachim Wuermeling, who is responsible for banking supervision at Deutsche Bundesbank. However, he said that banks should "be prepared for unfavorable scenarios."

 

Many banks have used the past few years to better prepare themselves for crises, said Bettina Orlopp, chief financial officer at Commerzbank in Germany.