Profits at European banks will not return to pre-pandemic levels before 2022, the region’s central bank warned today in its latest financial stability review, CNBC reports. Lenders in the eurozone have struggled to make sizeable profits over the last decade following the 2008 global financial crisis, with stronger regulatory scrutiny and low interest rates. “Bank profitability is expected to remain weak,” Luis de Guindos, vice president at the ECB, said in a statement. If a bank presents consistently low profits that could hurt its ability to lend money to businesses and individuals. However, interest rates — which are what banks charge for lending money — are expected to remain low as the ECB continues with its ultra-loose monetary policy.

Source: The Standard November 25, 2020 12:45 UTC