ECB’s De Guindos: Effects of negative rates on the banking sector need to be carefully monitored

Dhwani Mehta FXStreet

Reuters reports the following key comments by the European Central Bank (ECB) Vice President De Guindos.

Banks’ profitability prospects could thus be dampened by deteriorating growth expectations, adding to structural weaknesses.

Overall effect of our monetary policy on bank profitability has so far been broadly neutral.

Effects of negative rates on the banking sector need to be carefully monitored, particularly because the balance of their effects will depend on how long rates remain.

Consolidation across countries is an indispensable complement to domestic M&As.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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