PARIS (Reuters) - Europe's new single banking supervisory regime could prompt restructuring in the sector, a European Central Bank board member said on Monday, adding that he saw capital markets as key to achieving more efficient financing in the bloc.
The ECB is taking over as supervisor of euro zone banks in November under Europe's new Single Supervisory Mechanism (SSM), which will give the bank wide-ranging powers, including the right to demand that lenders increase their capital buffers.
"The mere presence of the SSM could induce restructuring as banks seek to reduce margins in anticipation of increased euro area competition," ECB Executive Board member Benoit Coeure said in the text of a speech for delivery in Paris.
"This will be compounded with the competitive pressure created by the expansion of e-banking," he added.
Turning to the composition of financing in the Europe, Coeure said that while the economy would remain bank-financed, "I see achieving a greater role for capital markets as central to a more efficient ... financing mix."
(Writing by Paul Carrel; Editing by Catherine Evans)