FRANKFURT, Germany (AP) – European Central Bank head Mario Draghi says some eurozone banks “face challenges” but that the system is more resilient due to oversight that was strengthened after the global financial crisis.
Draghi said banks were in a position to bring down the amount of bad loans burdening their finances “in an orderly manner over the next few years.”
Draghi’s comments Monday in the European Parliament follow a week of violent swings in the stock prices of major European banks including Deutsche Bank and Societe General. Draghi said some banks faced challenges from litigation and restructuring costs as well as working off soured investments.
The ECB carried out a wide-ranging check of bank finances in 2014 and Draghi said that had forced them to strengthen their finances.