© Reuters. FILE PHOTO: Andrea Enria, chairperson of the European Banking Authority, speaks at Reuters Summit interview in London, Britain, September 25, 2017. REUTERS/Afolabi Sotunde
FRANKFURT (Reuters) – Low European Central Bank interest rates are now hurting bank margins more than they are boosting lending volumes and are likely to continue doing so for a while, top ECB supervisor Andrea Enria said on Tuesday.
\”The margin effect has been prevailing so there is a negative effect on bank margins but this is likely to persist for a while,\” Enria said on Bloomberg TV.
By contrast, he said the low-rates environment had been a net positive for banks until mid-2020.
