Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The EU’s banking sector may be in “overall good shape,’’ according to the Commission, but the European Central Bank is cautioning that some lenders could still be vulnerable to financial strain due to rising interest rates. Elaborating on the state of the finance industry after the collapse of Silicon Valley Bank, ECB Vice President Luis de Guindos warned finance ministers this week in Brussels not to be complacent and said that a lack of confidence could trigger contagion, we’re told. And that was before the collapse in Credit Suisse Group’s share price prompted Switzerland’s central bank to step in with liquidity. The ECB is facing a potential conflict between its mission to bring down inflation and possible damage to some financial institutions, Guindos cautioned.