Constancio suggests “small public aid” to banks – TVI24

The Vice President of the European Central Bank, the Portuguese Vítor Constâncio, advised European countries, without naming cases in particular, to “reflect” on support for banks . He made this appeal, suggesting even if there is a “small” injection of public capital in the sector, to meet the Brexit .

“the current situation, after a new round of declines in stock prices resulting from Brexit, deserves a deep reflection to correct some flaws in markets with little public help considerably stabilize some banking sectors”

then on June 24, when the results of the British referendum were known, the ECB secured liquidity to face the consequences and days later President Mario Draghi insisted on “alignment” between central banks .

Now, from Spain, an event organized by the University of Navarra on the challenges of European banks , its number two argued that without this attitude, unição solution available for supervisors would “impose time limits” to reduce the high level of bad loans.

Looking at the boom of the startup financial, admitted that they are one of the major threats to traditional banking, but has no doubt that the banks “will not disappear”. What to do is the industry reduce costs and improve at the same time their ability to cope with a competition dubbed “fierce” in this market in constant technological evolution.

On monetary policy, said that the supervisor of the European banking know “the limits of certain instruments” that serve to stimulate the economy.

As for inflation, Vítor Constâncio believes that the ECB will be able to “normalize” the levels in the coming years, with benefits to the macroeconomic scenario but also with positive effects in the financial sector.