Central banks

The number of banks in the euro area has continued to decline over the past year, but capital buffers are improving. This shows data from the European Central Bank quoted by The Wall Street Journal.

On an unconsolidated basis, the number of credit institutions at the end of the previous year was 5073 compared to 5474 in 2015.

Inflation in the eurozone will slump in early 2018, the European Central Bank forecast on Sept. 18, but return to an upward path towards its target later in the year.

Price growth could fall as low as 0.9 percent in the first quarter, the ECB said in its regular economic bulletin, far short of governors' target of just below 2.0 percent.

Local bank managers are optimistic about the European Central Bank's upcoming stress tests and are certain that no new funds will be required.

Economic recovery in the Eurozone is stable, according to the economic bulletin of the European Central Bank, quoted by BNR.

''Incoming data, notably survey results, have increased the Governing Council's confidence that the ongoing economic expansion will continue broaden'', the ECB said in its regular economic bulletin.

The U.S. Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target.

Deputy Prime Minister Nurettin Canikli has said he expects Turkey to grow more than 4 percent this year, after 3 percent last year, while the inflation rate will close the year at around 7.5 percent. 

Kathimerini understands that German Chancellor Angela Merkel is prepared to do whatever it takes to conclude the second review of Greece's third bailout so that it can join the European Central Bank's quantitative easing program (QE), on the condition that the government agrees to a package of pension cuts and a reduced tax threshold - amounting to roughly 2 percent of GDP.

The Bank of Greece is sticking to its forecast which sees the economy expanding 2.5 percent this year, according to its annual report presented yon Friday by Governor Yannis Stournaras, though he warned that the economy will face a series of uncertainties unless an agreement is reached swiftly by the government and the country's creditors.

The imbalances in the economic strength of euro area countries make the continued function of the single currency area a primary concern, said former US Federal Reserve chairman Alan Greenspan in an interview with the World Gold Council.

The European Central Bank maintained the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank at 46.3 billion euros ($49.22 billion), the Bank of Greece said on Thursday.

The move reflected stabilization of liquidity conditions, taking into account private sector deposit flows, it said. The ELA ceiling is valid up to March 9.