ECB's Asmussen sees stability but more reform needed

In a speech taking stock five years after Lehman, Jorg Asmussen has said that he does not think regulatory reform is finished and, although the financial system is more stable than five years ago, we should not rule out another Lehman event.

The executive board member of the European Central Bank continued to say that US bank stress tests in 2009 were credible and give reason to put more trust in US banks now.

The US, he said, tackled non-performing loans and zombie banks more effectively than Europe.

The two stress tests European banks faced didn't return trust; banks cannot provide credit without trust, but the current return of investors in the Eurozone shows that it is coming back.

He highlighted Spanish debt - that 35 per cent of the country's government debt is held by non-residents.