Belgium has one big bank too many

Belgium needs to do away with at least one of its four major banks, according to Luc Coene, Governor of the National Bank of Belgium (NBB). The Belgian banking sector is currently dominated by BNP Paribas Fortis, KBC, ING and Belfius.

During a television interview with Channel Z, Coene said that the interest margins of the banks are under increasing pressure due to competition around mortgages and corporate loans. The banks also face high operating costs, mainly due to personnel and expensive computer systems and protected ICT networks.

According to Coene, Belgium’s big banks would be better off with a merger or a takeover by a foreign institution. He says the banks need not fear an immediate wave of redundancies, because space will free up in the workforce as soon as the baby boomer generation starts to retire.