ECB's Lane flags dollar risk for banks amid tariff turmoil

Former Governor of the Central Bank of Ireland Philip Lane.

Euro zone banks may come under pressure if US dollar funding - the lifeblood of financial markets - were to dry up, the European Central Bank's chief economist Philip Lane said on Tuesday amid concern over US President Donald Trump's policies.

Dollar funding fears have been at the back of central bankers' minds since Trump announced a wave of trade tariffs and began putting pressure on the Federal Reserve earlier this year.