FRANKFURT Europe's banking troubles are limited but the broader issue is weak profitability and an excessive number of banks, European Central Bank chief economist Peter Praet said in a newspaper interview.
"There is hence a need for consolidation in the banking sector," Praet, who sits on the ECB's Executive Board told Dutch newspaper Telegraaf. "I definitely think that we must have pan-European banks. That means that, in the event of a national economic shock, banks are not overexposed to any one country."
(Reporting by Balazs Koranyi; Editing by Angus MacSwan)