ECB’s de Guindos warns of hit to banks from higher rates

LONDON (Reuters) – Euro zone banks are set for some pain as the economy slows and higher interest rates land some companies in hot water, the European Central Bank vice-president Luis de Guindos said on Tuesday.

“You have to take into consideration that we’re going to have a slowdown of the economy and simultaneously that higher rates will have a clear an impact on the solvency of corporates,” de Guindos told an event in London.

(Reporting By David Milliken and Marc Jones; Writing by Francesco Canepa in Frankfurt; Editing by Alex Richardson)