FX & CFD trading involves significant risk
European Central Bank (ECB) Executive Board member Sabine Lautenschlaeger said in an interview to German newspaper Handelsblatt on Thursday that a long period of low interest rates could have a negative impact on the business models of certain banks.
"Banks can cope with a short phase of low interest rates. When this lasts for longer, the viability of the business models of certain institutions and how well they cope with a slump in their interest income come into question," she said.
Lautenschlaeger added that those banks may need more capital to offset a drop in their interest income.