european banks 'in much higher shape' now than numerous years ago

"The ultimate two weeks are a testament to that," Ermotti said at the 2016 Institute of global Finance Annual membership meeting in Washington. "The same sort of dynamics seven or eight years ago might have created a chief fallout."

The feedback came as Deutsche bank (DBKGn.DE), Germany's biggest lender, faces heavy stress because it fights a penalty of as much as $14 billion that the U.S. department of Justice plans to impose for misselling loan securities. On Thursday, IMF leader Christine Lagarde gave the bank a few tough advice, pronouncing it needed to reform its business model and swiftly reach a address U.S. regulators.

Ermotti additionally said that eu banks need to see some consolidation around geography and client segmentation.

"every bank should actually try to parent out, 'what is my DNA? what's my relevance to clients?'" he delivered.

also at the convention, Ana Botin, the new chairwoman of Banco Santander SA (SAN.MC), said Europe isn't always prepared for move-border mergers among banks as several perquisites, from regulatory measures to efficiency gains, are nonetheless wished.

some regulators and ecu critical financial institution officers have referred to as for more pass-border mergers, arguing that Europe's bloated financial institution region need to be reduced, given vulnerable profitability, poor efficiencies and immoderate opposition.

"I don’t assume Europe is prepared for pass-border consolidation ... I suppose politically that’s now not the path right now," Botin said.

Botin changed into appointed last month after the unexpected loss of life of her father, Emilio. She has said she would push beforehand with the worldwide diversification of the lender.

The comments come as Britain prepares to depart the ecu Union, both in a “difficult Brexit” wherein in it leaves the eu’s single market so as to impose controls on immigration, disrupting get entry to to the us of a’s essential buying and selling accomplice, or in a “gentle Brexit” wherein it continues in or near the eu’s unmarried marketplace, maintaining many trade and enterprise blessings.