Draghi Says Growth Fears, Not Regulation, Driving Bank Turmoil
- Region's lenders would be more fragile without recent revamp
- Working through bad-loan stock takes time, ECB President says
Could a Capital Markets Union Fix Europe’s Banks?
This article is for subscribers only.
The volatility playing havoc with European bank stocks in recent weeks is primarily due to market nerves about the slowdown in global growth rather than misperceptions about the direction of financial regulation, European Central Bank President Mario Draghi said.
“Current market developments appear to be more related to general factors concerning weakening economic activity,” Draghi said during a hearing at the European Parliament on Monday.