UniCredit CEO: Digital euro may affect bank liquidity

UniCredit CEO Andrea Orcel said the upcoming digital euro could reduce banks’ retail deposits, the cheapest source of funding, potentially affecting liquidity and profit margins.

Speaking at a Morgan Stanley conference in London, Orcel noted that UniCredit is engaging closely with the European Central Bank to ensure the digital euro meets its monetary goals without excessively harming banks, News.Az reports, citing Reuters.

Orcel described the bank’s stance as “relatively constructive,” highlighting a cautious but optimistic approach to the central bank’s digital currency initiative.

News.Az 

By Aysel Mammadzada