ECB Closes Ranks with Bank of England to Avert Brexit Crunch

The ECB is part on an Olympian fraternity of global central banks above the fray

by Ambrose Evans-Pritchard

The European Central Bank has pledged to flood the financial system with euro liquidity if credit markets seize up after a Brexit vote.

The move came as European bank stocks plummeted across the board for another day, the epicentre of stress as nerves fray over the potential fall-out from British referendum.

The Euro Stoxx index of bank equities fell to a four-year low, and is nearing levels last seen in during the eurozone debt crisis in 2012. Europe’s banks have lost half their value in the last year.

“We have taken the necessary precautionary measures to meet liquidity needs,” said Ewald Nowotny, Austria’s central bank governor and an ECB board member.

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