Search
 

Profit Replaces Risk as Main Concern of European Bank Regulators

Banks may actually be less stable than before the financial crisis because the regulatory environment inhibits their ability to raise capital.

By Stephen Morris, Bloomberg | Updated on December 16, 2016

After years spent clamping down on risky behavior at banks and punishing them for past misdeeds, Europe’s regulators have awoken to a new worry: Lenders aren’t making enough money.

Shrinking profitability has become a “concern for financial stability” because it may reduce banks’ ability to recover from shocks by generating capital or selling stock, Bank of England Governor Mark Carney said on Nov. 30. The week before, European Central Bank (ECB) President Mario Draghi said profitability “remains a challenge to be addressed.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.