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Germany: Regulator presses banks to reform

By  |  June 27, 2019

According to a report from Reuters, Germany’s top financial regulator warned of the dangers posed to banks by cheap money and urged them to “get real” in overhauling their businesses and axing loss-making operations.

The comments come as the nation’s largest lender, Deutsche Bank, works on a plan for “tough cutbacks” to its underperforming investment bank.

Felix Hufeld, president of the financial markets watchdog BaFin, said a further reduction of interest rates—which have already been at historic lows for years after the financial crisis—would put even more pressure on banks.

European Central Bank (ECB) President Mario Draghi said last week that the ECB was prepared to cut rates or restart bond purchases in the absence of a clear improvement in the inflation outlook.

Full Content: Reuters

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