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Vice President of European Central Bank: banking industry will not recover from pandemic until 2022

Vice President of European Central Bank: banking industry will not recover from pandemic until 2022

by YCPress

Vice President of European Central Bank: banking industry will not recover from pandemic until 2022

16th November European Central Bank Vice President De Kindos delivered a written speech at the 23rd Euro Finance Weekly meeting

saying that the banking industry will not be able to return to the level before Coronavirus crisis until at least 2022.

He pointed out that under the weight of the pandemic, European banks must speed up their restructuring process: “Today, solving structural problems is more urgent than ever.

In the face of a persistently low interest rate environment, we must reduce overcapacity and improve efficiency and reduce costs. “

According to the expectations of the European Central Bank, the impact of Coronavirus Pandemic is very far-reaching, and the banking industry has to spend a long time to deal with it. 

Dekindostein said that before 2022, European banks are unlikely to reach the level of profitability before the outbreak. He believes that Eurozone banks should reduce losses through capital buffers and continue to provide loans to companies. 

At the same time, more comprehensive and strict supervision of investment funds must be carried out to prevent further turbulence in the financial market. 

De Jindos also called on European countries to develop a comprehensive plan to support the banking industry to help reduce non-performing loans and improve the transparency and efficiency of capital markets.

It is reported that the European Central Bank, headquartered in Frankfurt, Germany, has fully assumed the single supervision function of the euro area banking industry since November 2014.

Currently, there are 113 large banks directly under supervision, accounting for approximately 82% of the market share of 19 euro area member states. .

In addition, Deutsche Bank CEO Christian Zewin also warned at the Euro Financial Week video conference on the 16th that decentralization is the most serious structural problem facing the European banking industry

And this situation must be changed through mergers and acquisitions.

Deutsche Bank, which carried out a large-scale business restructuring in history in the summer of 2019, is the largest commercial bank in Germany. 

Zewen said that the bank is still in transition and is expected to increase profitability after 12 to 15 months.