European banking industry must reflect on its business model, says Bankia's president Goirigolzarri

Eugenia Jiménez
clock • 2 min read

The fall in profitability by negative interest rates, a shift in customer habits caused by new technologies, and reputation are some of the major challenges that should lead the European financial sector to reflect on its business model, Bankia's chairmanJosé Ignacio Goirigolzarri assured. European banks' profitabilityremains below their long-run cost of capital due to the increase in capital demands and the negative interest rates era, which has lead them to be listed at 50% of their book value. American banks conversely have a capitalisation 17% higher than their book value.  This i...

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Eugenia Jiménez
Author spotlight

Eugenia Jiménez

Eugenia Jiménez speaks Spanish and is Iberia Correspondent for Investment Europe covering Spain & Portugal, as well as Italy.

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