FILE PHOTO: A view of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024. REUTERS/Jana Rodenbusch/File Photo

FRANKFURT (Reuters) -Euro zone banks must prepare for a world in which liquidity is less abundant and they navigate well in periods of market stress such as the one that followed the announcement of U.S. tariffs last April, the European Central Bank's chief supervisor Claudia Buch said on Tuesday.

"We've also told the banks... to prepare also for the changes in the in the monetary policy and environment," Buch said, adding banks are expected to "pre-position collateral" they may need to borrow cash.

"But all this is going very, very smoothly right now and you see it basically also in the data."

(Reporting By Balazs Koranyi; Writing by Francesco Canepa; Editing by Andrew Heavens)