European Central Bank (ECB) top supervisor Andrea Enria said on Tuesday that the banking sector in Europe is comfortable in terms of capital, as reported by Reuters.

However, Enria further noted that forborne loans in the euro area warrant caution.

Market reaction

These comments don't seem to be having a noticeable impact on market sentiment. As of writing, the Euro Stoxx 50 Index was down 0.35% on the day at 4,058. Meanwhile, the EUR/USD pair continues to fluctuate in a tight range and was last seen trading unchanged on a daily basis at 1.1551.