ECB Tumpel-Gugerell: Major Banks Can Set New Tone For Sector
FRANKFURT -(Dow Jones)- Major commercial banks can set a new tone for profit
expectations and investment behavior in the financial sector, a high-ranking
official of the European Central Bank said Friday.
"I think that major banks have indeed the ability" to influence the behavior
of the whole sector, said ECB executive board member Gertrude Tumpel-Gugerell.
She said that Deutsche Bundesbank President Axel Weber was right in saying
that commercial banks should lower their profit expectations during times of low
interest rates rather than take on extra risk to meet unrealistic targets. Weber
made these comments during a banking conference earlier Friday.
She added, however, that it depended on share holders what leeway bank
executives have.
ECB Web site: www.ecb.int
-By Roman Kessler, Dow Jones Newswires, +4969 2972 5514, roman.kessler@
dowjones.com
(END) Dow Jones Newswires
11-20-090543ET
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