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19 May 2014
ECB's Coeure sees Eurozone banks restructuring under SSM
FXStreet (Łódź) - ECB Executive Board member Benoit Coeure said on Monday that when the central bank takes on the role of the Single Supervisory Mechanism for Eurozone banks in November, it could bring about the restructuring of the financial sector in the area.
"The mere presence of the SSM could induce restructuring as banks seek to reduce margins in anticipation of increased euro area competition," Coeure said in a speech delivered in Paris, adding that "This will be compounded with the competitive pressure created by the expansion of e-banking."
Moreover, Coeure suggested that capital markets could become a greater source of financing for Eurozone's financial institutions. He also said that price convergence didn't equal market integration.
“If we see the return of price convergence as ‘job done’ we risk making no progress at all. We may even be placing the seeds of the next crisis,” the ECB policymaker stressed.
"The mere presence of the SSM could induce restructuring as banks seek to reduce margins in anticipation of increased euro area competition," Coeure said in a speech delivered in Paris, adding that "This will be compounded with the competitive pressure created by the expansion of e-banking."
Moreover, Coeure suggested that capital markets could become a greater source of financing for Eurozone's financial institutions. He also said that price convergence didn't equal market integration.
“If we see the return of price convergence as ‘job done’ we risk making no progress at all. We may even be placing the seeds of the next crisis,” the ECB policymaker stressed.