What Draghi’s Remarks Mean for the Euro Area’s Banks

(Bloomberg) -- The euro area’s banks have struggled to restore profitability to levels close to those seen before the global financial crisis and Germany’s banks have had a particularly difficult time. With the woes of Germany’s two largest banks dominating the headlines, the European Central Bank may feel under some pressure to mitigate the effects of its negative interest-rate policy and President Mario Draghi’s comments suggest the Governing Council is taking a closer look at its options. Bloomberg Economics thinks the most likely tool for pain relief is the targeted longer-term refinancing operations.

©2019 Bloomberg L.P.