The EU’s banking sector may be in “generally good shape”, according to the European Commission, but the European Central Bank warns that some banks may they are still vulnerable under financial pressure due to rising interest rates.

Analyzing the state of the financial sector after the collapse of US Silicon Valley Bank, ECB Vice President Luis de Guidos warned, according to Bloomberg, finance ministers this week in Brussels not to be complacent, adding that a lack of confidence could cause transmission. It is noted that this warning came before the collapse of the share price of the Swiss bank Credit Suisse which prompted the central bank of Switzerland to intervene with liquidity. The ECB faces a potential “conflict” between its mission to reduce inflation and potential damage to some financial institutions, de Guidos warned.

It is noted that today is Friday, meets in special session the European Central Bank’s Supervisory Board to discuss the pressure on the banking sector following recent market fluctuations.

“The Supervisory Board meets to exchange views and inform members about current developments in the banking sector,” an ECB spokesman said.

A corresponding ad hoc (on this matter) meeting was preceded at the beginning of the week, while today’s meeting takes place after yesterday’s increase in interest rates by half a percentage point by the ECB.

French central bank governor Francois Villeroy de Gallo said today that the ECB’s decision reflects the priority it places on fighting inflation and sends a message of strong confidence in the stability of European banks.

“French and European banks are very stable,” the central banker said in an interview with a radio station.

“I think we have sent a strong and double signal of confidence that reflects both confidence in our anti-inflation strategy and confidence in the stability of European and French banks,” he added.

Although the ECB has “the tools to ensure bank liquidity”, Villeroy said it was unlikely to need to use them as “European banks are not in the same situation as American banks”.

Meanwhile, European stock markets move higher after the decision of 11 American banks to support with deposits amounting to 30 billion dollars First Republic Bank whose deposits are under pressure