Monetary policy should not be designed for banks, BNP Paribas chairman says

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Monetary policy should not be designed for banks, BNP Paribas chairman says
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In an era of negative interest rates in Europe, monetary policy should not be geared towards appeasing the banking sector, BNP Paribas Chairman Jean Lemierre has said.

Speaking to CNBC's Annette Weisbach at the BNP Conference in London on Thursday, Lemierre said the ECB was moving in the right direction with its latest rate cut and substantial bond buying package, but "can't be alone" in efforts to stimulate the European economy.as placing a burdensome squeeze on lenders' profits, but Lemierre insisted it is the role of banks to adapt to a changing monetary environment.

"It is not easy, but our job is to adapt and monetary policy shouldn't be designed for banks," Lemierre said, adding that lenders should have the "appropriate business model in this environment by product and by region." "We need to reduce costs and we need to move more digital," he suggested. "The banking sector should not be a toll on the economy, but a support to the economy."

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