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MNI BRIEF: ECB Unlikely To Use Deposit Rates To Spur Bank M&A

The ECB is unlikely to follow the lead of the Bank of Japan in providing higher deposit rates for banks which consolidate or cut costs, a senior European official told MNI.

"It would require the ECB to establish which bank restructurings are desirable and which are not," said the official, commenting on the BOJ's recent introduction of a "special deposit facility" for regional banks. "I don't think it could work in the EU."

MNI Brussels Bureau | david.thomas.ext@marketnews.com
MNI Brussels Bureau | david.thomas.ext@marketnews.com

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