European Central Bank Governing Council member Christian Noyer said on Tuesday market turmoil had created economic uncertainties but struck an optimistic note on the financial system's ability to weather the turbulence.
"Financial market turmoil has created macro economic uncertainties," he told a Euromoney fixed income conference in Paris.
"By any measure we are facing a huge shock in financial markets. Spreads in some segments of credit makets have widened with unprecedented speed and volatility."
He said that while losses had been "significant and spectacular" for some institutions, they did not seem to pose a major risk to the health of the financial system.
"Most notably, the turbulences occurred in a very favourable macroeconomic environment," he added.