Luis de Guindos, Vice President of the European Central Bank, stated on Thursday that the direct exposure of banks in the eurozone to the war in the Middle East is limited, but the conflict could lead to systemic pressures due to interconnected vulnerabilities. Financial markets have been under pressure in recent weeks due to the impact of the American-Israeli war with Iran, but selling outside the Middle East has remained limited, even as some assets remain above fair value. He added: "The direct exposure of banks to the region is limited, and the banking system is in good shape thanks to profitability." De Guindos also said in a speech: "The implications for the financial sector in the eurozone remain limited for now."
