Dombret paints gloomy picture of low rates’ impact on banks

Deutsche Bundesbank board member, Andreas Dombret

The longer banks have to cope with low interest rates, the more likely they are to take risky assets onto their books, a member of the Deutsche Bundesbank's executive board has said.

Speaking on December 2, Andreas Dombret homed in on the major risks facing financial institutions in the current low interest rate environment, noting that the pressure on margins would "mount" over the medium term as outstanding loans are repaid and replaced by lower-yielding ones.

But it is the risks that could

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