Deutsche Bank chief executive John Cryan has called on the ECB to end the ultra-low interest rate policy that has battered banks’ profitability in recent years.
“The era of cheap money in Europe should come to an end – despite the strong euro,” the bank boss told a Frankfurt conference. “The real economy is doing well, the market is expecting I think an increase in interest rates or a reduction in the negative nature of interest rates… Let’s start doing that.”
Balking at the European Central Bank’s negative interest rate on some deposits, he added: “It can’t be forever that deposit taking is a loss making… for banks.”
The ECB is expected to keep rates unchanged when it announces its latest policy stance tomorrow in Frankfurt.
This is not the first time Deutsche has taken a swipe at the ECB’s policies. Last year it said the stimulus was “threatening the European project as a whole for the sake of short-term financial stability”.
Danielle Nouy, the head of the ECB’s bank supervision arm, was the next speaker at the Frankfurt conference but she said she would “certainly not respond” to a question on whether it was time to rates.
“I never took care of monetary policy in my career, and we work under the principle of separation (of supervision and central banking),” she added.
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