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ECB’s Enria Says Pandemic Marked a Turning Point for Banks

  • Banks can’t just wait for higher interest rates, watchdog says
  • Risk controls should be a focus given ‘froth’ in some markets
Updated on

European banks have used the pandemic to start tackling long-standing issues that weigh on their profitability compared to U.S. competitors, according to their top regulator.

“There has been a long period in which European banks seemed to be waiting for the Godot of interest rates increasing and rebuilding their margins,” Andrea Enria, who chairs the European Central Bank’s Supervisory Board, said in an interview with Bloomberg TV’s Maria Tadeo on Tuesday. “With the pandemic they understood that they need to take action.”