2 Dec 2013
ECB's Constancio: Banking union to stimulate mergers and acquisitions
FXstreet.com (Łódź) - ECB Vice President Vitor Constancio, who appeared on Monday at a conference organized by the Institute of International and European Affairs in Dublin, said that the implementation of the EU banking union would facilitate mergers and acquisitions in the banking sector.
The ECB is due to assume its role as the Single Supervisory Mechanism in November 2014, after examining the balance sheets of 124 Eurozone banks. Constancio said that most probably “a period of restructuring in the European banking sector” would follow, especially by means of mergers and acquisitions.
"I expect this process of restructuring to be driven first and foremost by the incentives of the private sector... there may be collateral effects of the change in the institutional environment that may favor that movement," the ECB Vice President stated.
He also indicated that the SSM's most important task would be to restore investors' confidence in the EU banking sector by enhancing transparency and ensuring that "both within and across countries, the same types of risks are given similar weights."
Moreover, Constancio expressed confidence that growth and employment in the Eurozone would be better protected under the banking union.
The ECB is due to assume its role as the Single Supervisory Mechanism in November 2014, after examining the balance sheets of 124 Eurozone banks. Constancio said that most probably “a period of restructuring in the European banking sector” would follow, especially by means of mergers and acquisitions.
"I expect this process of restructuring to be driven first and foremost by the incentives of the private sector... there may be collateral effects of the change in the institutional environment that may favor that movement," the ECB Vice President stated.
He also indicated that the SSM's most important task would be to restore investors' confidence in the EU banking sector by enhancing transparency and ensuring that "both within and across countries, the same types of risks are given similar weights."
Moreover, Constancio expressed confidence that growth and employment in the Eurozone would be better protected under the banking union.