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Europe's bank sector may need to shrink through mergers: ECB's Nouy

All in all, it seems that the European banking sector might indeed have become too much of a good thing

Reuters  |  Frankfurt 

The headquarters of the European Central Bank (ECB) are pictured in Frankfurt
The headquarters of the European Central Bank (ECB) are pictured in Frankfurt

Europe's sector has grown too big and may need to shrink, possibly through mergers or failures, Daniele Nouy, the European Central Bank's top supervisor said on Wednesday.

"All in all, it seems that the European sector might indeed have become too much of a good thing," Nouy said. "And we can see at least one of the health issues related to this - many in the euro area do not earn their cost of capital.

"It seems that there are too many competing for customers," Nouy added. "There is a good chance that the sector will indeed shrink"

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, September 27 2017. 13:51 IST
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