(Adds Lagarde quotes, details)
FRANKFURT, March 19 (Reuters) - The European Central
Bank remains ready to support euro zone banks with loans if
needed, ECB President Christine Lagarde said on Sunday, adding
that the Swiss-brokered rescue of Credit Suisse was
"instrumental" for restoring calm to the markets.
Investors have been concerned about the impact of Credit
Suisse's debacle on euro zone banks despite the ECB's repeated
reassurance that lenders in the 20 countries that share the euro
are solid.
Lagarde repeated that euro area banks were "resilient, with
strong capital and liquidity positions" but said the central
bank was ready to step in if necessary.
"Our policy toolkit is fully equipped to provide liquidity
support to the euro area financial system if needed and to
preserve the smooth transmission of monetary policy," she said
in a statement.
The ECB has in the past provided banks with ultra-cheap,
multi-year loans known as Targeted Longer-Term Refinancing
Operations, as well as Emergency Liquidity Assistance, which can
be provided by the 20 national central banks of the euro zone
against a broader palette of collateral.
Lagarde welcomed "the swift action and the decisions taken
by the Swiss authorities", which orchestrated Credit Suisse's
takeover by rival UBS .
"They are instrumental for restoring orderly market
conditions and ensuring financial stability," she said.
(Reporting by Francesco Canepa; Editing by Peter Graff and Hugh
Lawson)
004906975651247; Reuters Messaging:
francesco.canepa.thomsonreuters.com@reuters.net))
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