Low ECB rates are now hurting banks; issue to persist, ECB’s Enria says

Business

Low European Central Bank interest rates are now hurting bank margins more than they are boosting lending volumes and are likely to continue doing so for a while, top ECB supervisor Andrea Enria said on Tuesday.

“The margin effect has been prevailing so there is a negative effect on bank margins but this is likely to persist for a while,” Enria said on Bloomberg TV.

By contrast, he said the low-rates environment had been a net positive for banks until mid-2020.