Poland's c. bank governor says EU c. banks may consider encouraging households to engage in capital market
European banks are not fulfilling their tasks when it comes to financing companies, so central banks may consider introducing incentives for households to transfer part of their savings to the capital market, Poland's central bank NBP governor Adam Glapinski assessed during an informal ECOFIN meeting in Warsaw.
"One of the long-term challenges today is the urgent need to make European financial markets more competitive. Many years ago, we agreed that banks play too big a role in the European economy. It is time to change that," said Glapinski, quoted in a Poland's central bank NBP press release, during a joint session of EU finance ministers and central bank governors.
"Banks are not doing their job when it comes to financing the corporate sector, in particular - innovative projects. Therefore, we can [as central banks - PAP ed.] consider introducing incentives for households to transfer some of their large savings from banks to the capital market," he added.
Poland's central bank governor stressed that the European central banks should remain pragmatic.
"(...) Financial markets are inherently volatile, sometimes prices move away from fundamentals and investors overreact to uncertainty. Therefore, we as policymakers should remain calm and continue to focus on long-term issues and challenges," he added.
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