The European Central Bank's (ECB) Governing Council member Ignazio Visco said on Monday that the Eurozone needs to quickly implement a deposit protection tool, like the one that the U.S. has. He also noted that the regulators have all the tools to face liquidity issues that may arise. At the same time, Visco stressed that the Eurozone's banking system does not have any liquidity or capital issues, but acknowledged that it faces contagion risks.
In addition, the official reiterated the ECB's 2% inflation target and noted that its monetary policy will count for the fact that the current situation will impact lending and the cost of capital. He also said that the ECB must assess the speed and magnitude of rate hikes at each meeting.