Draghi’s speech: Little evidence that negative rates are undermining bank profitability

The European Central Bank (ECB) President Mario Draghi is on the wires now, delivering the opening remarks at the 2nd ECB Forum on Banking Supervision “Europe’s changing banking landscape” in Frankfurt, Germany.

No comments made so far on the economic outlook or monetary policy.

Key Headlines:

Little evidence that negative rates are undermining bank profitability.

Sees no sign of credit-fuelled housing bubbles.

NPL problem not yet solved.

EU supervision and monetary policy are complementary.

Stronger supervision has improved the transmission of our policy impulses through banks.

Credit risk exposures in banks' loan books have declined as monetary policy has eased.

Default rates have fallen, and forward-looking measures also suggest a decline in credit risk.