It is known that negative rates damage banks profitability (is anybody looking at what is happening to the insurance sector?). Banks start showing signs of unease with today’s monetary policy in Europe (again, the swift action taken at the beginning of the crisis on the other side of the Atlantic confirms the importance of fast action, without limits, ending in a lower cost to the taxpayer – if any, a banking sector on surely sounder feet and no doubts about is solidity). The answer from the European Central Bank (Daniele Nouy, head bof ECB banking arm) accepts the difficulties declared by the banks but still sees a large room for improvement within this part of the service sector. The call for higher efficiency is based on the suggestion to improive the use of digital technologies. One other suggestion to lower the costs from the ECB to the banking sector is also to use the new four year loans program.
No doubt a huge transformation of the sector is ongoing, with the presence of the central bank reaching a very high level of capillarity, one further effect is being created out of the specific banking sector.
Modern economies employ labour mostly in service sectors, banking being one of them (and one of the largets), we have lived post industrial society, we might be at the start of the post tertiary one, digitalization of the service sector is the way, social unease might come with it.
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