European banks are solid, says French central bank chief

France's central bank chief sought Monday to distance European and French banks from the problems at Credit Suisse and banking woes in the United States.

Credit Suisse and the banking volatility in the United States "don't concern French and European banks", Francois Villeroy de Galhau, a member of the European Central Bank's governing council, told France Inter radio.

He added that French banks were "very solid" and that "there are no problems for French banks."


He welcomed the takeover of stricken Credit Suisse by fellow Swiss bank UBS which he said would help guarantee "the stability of the whole financial system."

French Economy Minister Bruno Le Maire also welcomed the takeover, saying: "I'm delighted with this deal. It's a good deal."

He added: "At the same time... (Credit Suisse) is a heavyweight in Europe, so we will remain extremely vigilant about the reaction of the markets."

Asian and European stock markets fell on Monday morning, while Credit Suisse's stock price collapsed further, more than 60 percent below the level UBS had agreed to pay to take it over.

Shares in UBS also took a hit, falling almost nine percent.

UBS agreed to buy its rival for $3.25 billion following crunch weekend talks aimed at preventing a wider international banking crisis.