Sluggish growth in the euro zone could create risks for stability: de Guindos, the ECB

FRANKFURT (Reuters) – Weak growth in the Eurozone is increasing the risk of financial instability as bank profits weaken and concerns about sovereign debt sustainability increase, the Vice-President said on Wednesday. President of the European Central Bank, Luis de Guindos.

"In an environment where cyclical factors could put downward pressure on banks' profitability, banks should redouble efforts to overcome structural challenges," de Guindos said at a conference in Frankfurt .

"These measures may include cost reductions (for example, reduced staff costs and streamlined branch networks, enhanced digitization) involving large-scale up-front investments, income diversification and a reduction in the stock of non-performing loans. the six countries where levels are still high, "said de Guindos.