VIENNA: Political support for Europe's oversized banking sector must stop, a top official at Germany's central bank said on Tuesday, comparing banks to dinosaurs facing a threat of extinction.
Concerns about German banks are mounting, with top lender Deutsche Bank forced to reassure investors this week it did not need government support to meet a possible US fine and low interest rates eating into their profits.
Andreas Dombret, the Bundesbank board member in charge of supervision, said banks' "structural deficiencies" should be tackled if they are to stand on their own two feet.
"Political support for the banking sector must finally come to an end - something that unfortunately I've only seen to a limited extent," he told an audience in Vienna.
He added: "Crucially, we cannot discuss away the structural deficiencies of the banking sector."
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