Constancio expects single supervision to lead to bank mergers
DUBLIN Dec 2 (Reuters) - The centralisation of banking supervision in the euro zone from late next year is expected to kick off a period of restructuring among banks, European Central Bank Vice President Vitor Constancio said on Monday.
Before the ECB will start supervising banks from November next year, it will run a series of tests on the euro zone's largest banks to uncover potential balance sheet risks and capital shortfalls.
"I would not be surprised if the SSM (Single Supervisory Mechanism) would open a period of restructuring in the European banking sector, in particular through more mergers and acquisitions," Constancio said in the text of a speech, to be given at a banking conference.
"I expect this process of restructuring to be driven first and foremost by the incentives of the private sector... there may be collateral effects of the change in the institutional environment that may favour that movement," he said. (Reporting by Conor Humphries, writing by Eva Taylor)
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