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

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.