MILAN (Reuters) – The coronavirus crisis will create room for mergers and acquisitions between euro zone banks, both domestically and cross-border, since it is reducing profitability margins, European Central Bank supervisor Andrea Enria said on Tuesday.
In an interview with Italian financial daily Il Sole 24 Ore, Enria said that a worsening of the situation on non-performing loans for European banks is “inevitable”.
“Banks will have to be careful, this is particularly necessary for banks that have not had major NPL problems in recent years and have no experience with the application of the ECB guidelines”, he added.
(Reporting by Gianluca Semeraro; Editing by Andrew Heavens)
