ECB's Nouy urge banks to adapt to low rates

FRANKFURT (Reuters) - Euro zone lenders need to adapt to survive in an environment where low central bank interest rates squeeze their profits, the European Central Bank's chief supervisor, Daniele Nouy, said on Tueday. "Going forward, low interest rates may eventually take their toll: high yielding assets will either mature or be prepaid, while at the same time, a decrease in interest expenses is limited by the zero lower bound on deposits," Nouy said. "So banks need to prepare for tomorrow by reviewing their business models today." To read Nouy's speech, click here: https://www.bankingsupervision.europa.eu/press/speeches/date/2016/html/se160517.en.html (Reporting By Francesco Canepa; Editing by Angus MacSwan)