September 4, 2019 / 3:24 PM / 2 months ago

Euro zone banks still vulnerable to downturn - ECB's Müller

FRANKFURT, Sept 4 (Reuters) - Banking profitability in the euro zone is so weak that lenders’ resilience to a downturn may be limited, even if they have spent years building up capital buffers, European Central Bank policymaker Madis Müller told Eurofi Magazine.

“The revenue earned by banks has been too small to cover the losses incurred in the past 10 years,” Müller was quoted as saying.

“This suggests that the banks’ resilience to a macroeconomic downturn in the future may be limited, even if their capital ratios have improved in recent years,” Müller, Estonia’s central bank chief, said. (Reporting by Balazs Koranyi; Editing by Hugh Lawson)

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