Jean-Claude Trichet: Europe Has Too Many Banks

The video discusses the challenges faced by European banks, including the need for restructuring and the impact of shadow banking. It highlights progress in reducing risky financial instruments but notes increased global leverage. The discussion covers the slow pace of banking union reforms and the heavy regulatory burden on European banks compared to the US. The need for European banks to restructure for profitability is emphasized, considering their significant role in financing the economy.

In what ways does the regulatory burden affect the banking sector in Europe?

What is the significance of restructuring for the profitability of banks in Europe?