European Central Bank President Christine Lagarde told EU leaders on Friday that the Euro area banking sector is resilient with strong capital and liquidity positions, Reuters reported citing EU officials.

Key takeaways

"Recent developments were a reminder how important it has been to continuously improve regulatory standards."

"We need to progress on completing the banking union, further work is also necessary to create truly European capital markets."

"There is no trade-off between price stability and financial stability, ECB has tools to address risks to both."

"ECB is determined to bring back inflation to 2%, will decide on future rates based on incoming data."

"ECB is fully equipped to provide liquidity to euro area financial system, if needed."

Market reaction

EUR/USD showed no immediate reaction to these remarks and was last seen losing 0.8% on the day at 1.0744.