Lagarde in Frankfurt:
- Celebrating 10 years of Single Supervisory Mechanism (SSM)
- Financial institution capital ratios improved considerably: CET1 up from 12.7% (2015) to fifteen.8% (mid-2024)
- Euro space wants extra banking consolidation – solely 2 euro space banks rank in international prime 10
- Banks want to assist fund €5.4 trillion in inexperienced/digital/protection investments (2025-2031)
- Pushes for lowered nationwide ring-fencing of capital/liquidity
- Needs larger securitization market (US market 3x bigger than Europe’s)
- Lowering the ring-fencing of capital and liquidity alongside nationwide strains would enable funds to circulation freely inside banking teams and facilitate lending throughout borders
Key quote: “At present, solely two banks included within the euro space rank among the many ten largest banks on the planet, holding the eighth and tenth positions.”
Lagarde is happy with banking supervision progress however desires to see larger, extra built-in European banks to compete globally and fund main financial transformations. She’s pushing for lowered nationwide obstacles and expanded securitization markets to make this occur.
This isn’t an element for the euro however my schedule reveals one other speech from her on the backside of the hour. I am unable to think about that is actually the case however I will preserve an eye fixed out.
