184 days ago • Posted by Charles-Henry Monchau

EU banks to be incentivized to merge like in Japan?

BoJ just announced a new policy, which they will offer a facility paying banks 0.1% if they either cut cost/income ratio by 4% or start doing M&A. The BoJ wants banks to clean up their acts and remove the "zombification". As the ECB is also willing to see European banks cutting costs and consolidate, could they follow the step of the BoJ and offer the same incentive? EU banking stocks spiked recently - this could be a trigger to extend the rally - source: The Market Ear, Refinitiv  

EU banks index (SX7E)