FRANKFURT (Dow Jones) – The outgoing bank president Hans-Walter Peters settles accounts with the European Central Bank (ECB) when he leaves office. “Even after intense fighting with Mr Draghi, I did not succeed in convincing the ECB of how negative interest rates harm the banks,” Peters told the Frankfurter Allgemeine Sonntagszeitung. On July 1, Deutsche Bank boss Christian Sewing takes over the top position of the private banks in Germany.
As Peters told the newspaper, European banks will be paying EUR 15 billion in negative interest this year alone, money that they urgently need elsewhere. “That doesn’t fit,” said Peters, in a pandemic environment, digitalization and climate change, which is affecting the financial industry. “The billions that they need to restructure their business and build up equity will be taken from the banks.”
He could not understand that the ECB leaders fail to recognize how much they endanger the competitiveness of the financial sector in Europe, warned Peters. “The banks will only regain strength when we say goodbye to negative interest rates.” The development since the turn of the millennium has been dramatic, said Peters. “We have lost a lot of our competitiveness against the Americans.”
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(END) Dow Jones Newswires
June 26, 2021 11:12 ET (15:12 GMT)