(Adds more quotes)
ATHENS, March 20 (Reuters) - The European banking system
is well-equipped with capital and the probability of contagion
due "very small", ECB's policymaker Yannis Stournaras said in an
interview with CNBC on Monday.
"We don't see substantial vulnerabilities. So, the
probability of contagion is very small today. The banks are well
capitalised," Greek central bank chief Stournaras said.
Stournaras added that Europe has all the instruments ready,
if needed, to intervene.
Answering a question on how vulnerable some EU banks are
to rising interest rates, he said: "I think the rate hikes are
mostly now a story of the past."
"I think we are close to the end of the tightening
cycle, so, to be honest, I do not believe that there is going to
be a problem, in the Greek or in the European banking system."
(Reporting Angeliki Koutantou and Lefteris Papadimas; Editing
by Kevin Liffey)
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))
