October 22, 2019
European banks run out of options to protect profits
By admin | |
Chief among their woes is the spectre of persistently low interest rates in the eurozone. In September, Mario Draghi, the outgoing president of the European Central Bank, cut its key deposit rate to minus 0.5 per cent, putting further pressure on banks’ net interest income. Markets expect rates to stay there or fall further after Christine Lagarde takes over.