“The ECB cannot and should not turn a blind eye to risks to financial stability.”
“Maintaining financial stability is about two things: First, it is about preventing the build-up of bubbles; second, it is about making the system more resilient,” said ECB Executive Board Member and Vice-Chair of the ECB’s Supervisory Board, Sabine Lautenschläger, today in a speech. It’s not often that central bankers are allowed to use the B-word in public, except when denying that bubbles exist, or when denying that they can be identified if they do exist.
“Prices of several asset classes are influenced by the central bank’s policies,” she said. And these policies of the ECB include: