ECB vice president mulls cross-border bank mergers
Large banks in the eurozone should consider partnering transnationally, while smaller lenders should consider merging in their domestic markets to reduce costs.
That’s according to Luis de Guindos, vice president of the European Central Bank (ECB), quoted in a Reuters report.
Europe’s banks should merge to mitigate low profits, says ECB VP
The vice president has again called for the combination of major lenders in response to slowdowns and profitability challenges across the bloc.
The ECB oversees monetary policy across the 19-member eurozone region and has attempted several stimulus programs to boost the economy.
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De Guindos told CNBC in November that the zone was facing two main challenges: a persistent low profitability for European banks and an increase in risk-taking as a result.
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On the subject of mergers, de Guindos said at the time: “With respect to large institutions, I think we should focus much more on cross-border.”
He said that the zone has a single currency, a single supervisory, and a single resolution (mechanism). The vice president added that he hoped that over time the zone would have a single insurance deposit scheme and real euro zone banks.”
