ECB’s Draghi says too soon to assess any Catalonia risk

Political events in Catalonia are significant but it is too soon to say if they will affect financial stability in the euro zone, European Central Bank President Mario Draghi said on Thursday.

It was premature to conclude that the Catalonia situation represented a financial stability risk, he told a post-policy meeting news conference.

Catalonia would likely drop out of the European Union and the euro zone if it were to secede from Spain, cutting off its banks from ECB funding.

Catalonia’s largest bank, Caixabank, said this week it had seen some deposit outflows after a vote for independence in the region on Oct. 1 that authorities in Madrid declared illegal, although it added this had since reversed.

Caixabank and Sabadell have both moved their headquarters to other Spanish regions after the vote in an attempt to calm deposit holders.
Source: Reuters (Writing by John Stonestreet; Editing by Hugh Lawson)

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