Bank of America Corp. Chief Executive Officer Brian T. Moynihan said “underlying fundamentals” of the economy are still improving and bankers have plenty of funds to lend.
Banks have excess liquidity as money sits idle and borrowers hesitate, Moynihan said Friday during a panel discussion at the World Economic Forum in Davos, Switzerland. The Charlotte, North Carolina-based company ranks second by assets among U.S. lenders.
While central banks have been providing support with low rates, the more fundamental issue for nations is to regain their competitiveness, Moynihan said, a sentiment voiced by other leaders during the session.
“We’ve got to take the burden off our central bankers shoulders and really governments and business leaders need to pick up that slack,” Deutsche Bank AG co-CEO Anshu Jain said.
Moynihan has spent his first three years at the helm cleaning up after his predecessor’s takeover of Countrywide Financial Corp. and Merrill Lynch & Co., divesting more than $60 billion of assets in the process.
The bank told investors earlier this month it’s counting on what it calls “a slow-growth but healthy economy” for the coming year.
The company announced an $11.7 billion deal to end disputes with Fannie Mae on bad home loans this month and joined an $8.5 billion industry accord to compensate for abusive foreclosures.
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