English
The banks in the Eurozone have done very well in an environment where interest rates are very low, says Benoit Coeure, a member on the board of the European Central Bank (ECB), who adds that their new issues are not caused by the easing of monetary policies.
In his opinion, banks' earnings are low, which diminishes their ability to generate capital, but many of these financial institutions have overcome the impact of the negative interest rates imposed by the Central Bank.
Benoit Coeure also says that the ECB is engaged in ensuring price stability, which sustains bank profitability.
The ECB official said yesterday, in Frankfurt: "Many banks have succeeded in compensating the drop in revenue interest through higher lending volumes, lower interest expenditures, the drop in risk provisions and capital gains".
Coeure's statements seem however seem to minimize the arguments that banks' major problems are caused by non-performing loans, which have nothing to do with the monetary policy.
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