Some euro zone countries need to beef up financial sector, ECB’s VP says

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FRANKFURT, Sept 29 (Reuters) – Some euro zone countries need to beef up their financial sector as their vulnerabilities are likely to be magnified by the imminent downturn of the bloc’s economy, European Central Bank Vice President Luis de Guindos said on Thursday.

“Certain countries have in recent years seen a build-up of financial vulnerabilities, notably related to residential real estate prices and growing household and firm indebtedness,” de Guindos told a conference.

“Given the deteriorated outlook for economic growth, some countries might benefit from further increasing the resilience of their financial sectors before credit risks start materialising.”

(Reporting by Balazs Koranyi;Editing by Alison Williams)

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