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ECB supervision and the state of the eurozone’s banks

ECB banking supervision has passed the first stage of the Covid-19 test, but many challenges remain

In early March 2020, policy-makers started to comprehend the magnitude of the shock the coronavirus outbreak would have on economies worldwide. Monetary authorities rapidly trimmed interest rates to record lows and started deploying asset purchase programmes at a scale never seen before. Nonetheless, less than a decade after the eurozone sovereign debt crisis, the European banking sector seemed a potential weak link in the global financial system.

In the previous debt and banking crisis

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