Alphavalue | The vice president of the European Central Bank, Luis de Guindos, warned that the profitability on the own funds of the Eurozone banks has fallen to less than 6% in the last twelve months until June 2019.
De Guindos acknowledged that bank intermediation margins are under pressure because interest rates are very low, but insisted on the need for consolidation in the European banking sector and that many banks adjust their business models.
On the other hand, Philip Lane, from the Executive Board of the ECB, said that European politicians need to change their fiscal policies to help stimulate economic growth. Lane added that a messy Brexit is less and less likely, although the ECB and the Bank of England continue to work in all scenarios.
