ECB Doesn’t Expect Liquidity Squeeze In Wake Of Brexit Vote

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Frankfurt: The European Central Bank (ECB) does not expect any squeeze in financial market liquidity or bank funding in the wake of Britain’s vote to leave the European Union after an initial shock was easily overcome, a senior official said on Wednesday.

“We do not expect indeed that such strains will materialize in the future,” said Ignazio Angeloni, who sits on the board of the ECB’s arm in charge of banking supervision.

“The immediate market funding and the liquidity shock has already taken place and was handled well.”

Mr Angeloni acknowledged that bank shares suffered more than others in the aftermath of the vote, but once corrected for a slump in the value of the pound, the changes were broadly the same on both sides of the English Channel.