(Bloomberg) -- European Central Bank Vice President Luis de Guindos said European banking consolidation is “important,” echoing comments made earlier this week.
Speaking in an interview with Expresso, he said:
- “I believe that consolidation is an important element.”
- “However, the contrast between the valuations of European and US banks is a sign of the potential problems that we face. I think that one reason for this is the lack of full banking union, as well as the national approaches that still exist in the banking sector. Because of this, investors regard US banks as having higher intrinsic value than European banks.”
- “In this context, cross-border consolidation is important and we hope that it continues to make progress in the near term.”
- For full interview (on the ECB’s website), click here
- Read more: ECB Has Always Favored Cross-Border Bank M&A, Guindos Says
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