Home Markets European banks need regulation reset to catch U.S. rivals, Botin says

European banks need regulation reset to catch U.S. rivals, Botin says

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Banco Santander’s chairwoman Ana Patricia Botin at bank’s headquarters in Boadilla del Monte, outside Madrid, Spain January 30, 2019. REUTERS/Sergio Perez/File Photo

MADRID, Sept 30 (Reuters) – Banks in Europe need more dynamic regulation to enable them to improve their profitability and catch up with their peers in the United States, the head of European Banking Federation (EBF), Ana Botin, said on Thursday.

Europe’s banks have tended to lag their U.S. rivals in terms of valuation and profitability. They have been slower to overcome problems left over from the financial crisis a decade ago and the European banking industry remains fragmented.

“Good regulation, proportionate, flexible and dynamic regulation is the route to high standards and growth. If we don’t get the balance right, we will not get the investment in the European economy all of us here want,” Botin told a European Banking Summit hosted by the EBF.

Banking capital buffers in Europe have…

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