September 18, 2019 / 11:10 AM / a month ago

Low profits at euro zone banks a concern for supervisors: Enria

FILE PHOTO: Andrea Enria, chairperson of the European Banking Authority, speaks at Reuters Summit interview in London, Britain, September 25, 2017. Picture taken September 25, 2017. REUTERS/Afolabi Sotunde

ROME (Reuters) - Thin profits at euro zone banks are a worry for supervisors because, coupled with depressed stock market prices, they can make it hard for lenders to boost capital, the bloc’s chief banking supervisor said.

Speaking after a meeting with the Association of Italian Banks in Rome, the European Central Bank’s Supervisory Board head Andrea Enria said low profits prevented banks from generating sufficient capital internally.

“And if market valuations are very depressed, banks could have difficulties raising capital on the market should the need arise,” he said.

Reporting by Giuseppe Fonte, writing by Valentina Za

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