ECB says that adjustment of business models is the biggest challenge for banks – publico

                 

                         
                     

                 

 
 

The President of the European Central Bank’s supervisory board (ECB), Danièle Nouy, ​​said the “adjustment of business models is the biggest challenge facing the banks.”

in presenting the first annual press conference of the Supervisory Single Mechanism, the official said that “it was necessary to do what was done” in terms of banking regulation after the financial crisis. Other challenges identified by Danièle Nouy were the “credit risks and high levels of problem loans.”

The ECB monitors since November 2014 the European banking sector in a harmonized way.

Nouy recalled the recent episodes of volatility in the stock markets, during which bank stocks fell in force. “European banks have become tougher in recent years to significantly increase their capital ratios,” he told reporters.

“Profitability is a challenge for banks by the low rates, but also by credits problematic and therefore this is a good opportunity to review their business models, “Nouy added.

according to the president of the ECB’s Supervisory Board,” recent episodes of volatility reveal uncertainty among investors, not necessarily in relation to the robustness of the banks, but when it comes to profitability. “

Nouy cited by the way, the low interest rates, weakening of the global economy and the falling oil prices and uncertainty factors. “Many investors are concerned about the ability of banks to adapt their business models and maintain profitability,” he said.

“There is no doubt that not yet achieved our objective of a truly European banking supervision, but we are much closer to achieving this, “he said Danièle Nouy.