EU banks may face major hit if they need to sell bonds -Lagarde

International Monetary Fund (IMF) Managing Director Christine Lagarde delivers a speech at the U.S. Chamber of Commerce in Washington, U.S., April 2, 2019. REUTERS/Kevin Lamarque/File photo

European banks may suffer significant losses if they need to sell their bond holdings to raise cash, the European Central Bank’s President Christine Lagarde said on Thursday.

“EU banks’ holdings of fixed income securities could be marked down quite significantly, should they need to be sold,” she told the annual conference of the European Systemic Risk Board, which she chairs.

Reporting by Francesco Canepa; editing by Jason Neely

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