Mersch Decries Banks That Can’t Handle a Little Pressure
- Overall impact of recent ECB stimulus has been net positive
- ‘There is a limit to how low interest rates can go:’ Mersch
Banks Brace for Funding Stress
This article is for subscribers only.
European Central Bank Executive Board member Yves Mersch said banks that can’t withstand temporary strains on their earnings may have bigger questions to answer about their future viability as businesses.
In a speech on Monday, Mersch acknowledged that low interest rates “put pressure on banks’ profitability” and noted analysts forecasts that return on equity may fall to 2 percent from 6.5 percent in some cases.