BNP Paribas CFO Worried About European Banking Union Delay

The uncertainty and delay surrounding the European banking union needs to end if lenders are to shake off “the shackles on growth,” the chief financial officer of BNP Paribas told CNBC.

“In terms of regulation risk, there is still a lot of uncertainty and I would argue that what is really important is that they allow banks to focus on implementing the regulation that is already there instead of tweaking proposals,” Lars Machenil told CNBC.

Europe’s shaky banks have been at the heart of the euro zone’s financial crisis of confidence. Governments struggling to keep down their deficits have had to sell more debt to prop up their lenders, which also buy the bonds.

In June 2012, European leaders agreed to set up a European banking union to put an end to this co-dependency. However, European governments have clashed over how far regulation should go – particularly over who should have the final say over rescuing and winding down banks.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza