13:39 GMT25 February 2020
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    Weak macroeconomic conditions will continue to weigh on Europe's banking sector in 2015, according to forecast of Moody's Investors Service.

    MOSCOW, December 8 (Sputnik) — The economic outlook for European banks in 2015 will be hampered by weak profits, risks of bail-ins and litigation charges, Moody's Investors Service announced Monday.

    "Weak macroeconomic conditions will continue to weigh on Europe's banking sector in 2015 and banks' low overall profitability implies that Europe's banking sector remains structurally vulnerable," Moody's Europe, Middle East and Africa financial institutions group managing director said in a statement.

    The credit rating agency's forecast follows the European Central Bank's (ECB) reduction of the euro zone's 2015 growth and inflation estimates last week. ECB chief Mario Draghi reduced the single currency area's Gross Domestic Product and inflation numbers for next year to 1.0 and 0.7 percent respectively. Falling oil prices and a weakening economic outlook were cited as reasons behind the 0.7 percent reduction from the ECB's September forecast.

    Draghi pledged to introduce stimulus measures next year to offset deflation, following in the footsteps of British, Japanese and US central banks.


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    economy, forecast, The European Central Bank (ECB), Moody's
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