Mergers in Europe’s fragmented banking sector are necessary to make the sector more resilient as the eurozone seeks to protect itself from future crises, France’s finance minister told Reuters in an interview. Bruno Le Maire, who joined President Emmanuel Macron’s centrist government in 2017 despite coming from the ranks of France’s conservative Republicans party, said banking sector consolidation was needed alongside a single regulatory supervisor and more integrated capital markets.
Le Maire, who has attended some of France’s most prestigious schools and held numerous senior posts in government, said the eurozone needed to finalize in coming months plans for a backstop for banks saddled with bad loans, and better integrate capital markets notably by agreeing to harmonize insolvency laws — a sensitive issue for some countries.
Le Maire also wants the eurozone to quickly thrash out plans for a shared budget aimed at encouraging convergence among the eurozone’s economies.
Article source: http://www.dailystar.com.lb//Business/International/2019/Apr-06/480530-bank-mergers-key-to-stronger-eurozone-le-maire-says.ashx