Linde fears ‘revival’ of debt sustainability concerns

Banking sector is challenged by changes in regulation and supervision, says governor

Luis M Linde
Bank of Spain governor, Luis Linde

Bank of Spain governor Luis Linde believes there is a "risk of a revival of concerns about the sustainability" of the European sovereign debt, especially in the "context of low nominal growth".

Speaking yesterday at a banking industry meeting, Linde said this risk has not "disappeared" and could be "reactivated" in the case of a substantial decline in macroeconomic conditions.

The Bank of Spain governor also highlighted other challenges facing the European banking sector, stemming from

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