European Officials Displeased Over Lagarde's Comment On Banks: Report

(RTTNews) - European officials on Sunday accused International Monetary Fund managing director Christine Lagarde of making a "confused" and "misguided" statement on the health of Europe's banks, the Financial Times reported.

In her address at an annual meeting of central bankers in Jackson Hole, Wyoming, the former French Finance Minister called for an "urgent" recapitalization of Europe's weakest lenders and stressed on the need to shore up the banking system.

But, the current key issue faced by the banks is funding, which is missing in Lagarde's comments, FT said quoting a central banker.

"Banks in some countries have had trouble securing liquidity in recent weeks and that pressure is going to mount. To talk about capital is a confused message," the official told FT.

Officials said they are planning to urge the former French finance minister to clarify her statement.

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