Consolidation in the banking industry is inevitable as the costs of litigation and a raft of new rules change the economics of the financial services industry, he predicts.
Reuters News reports that Deutsche Bank's co-chief executive Anshu Jain told a banking conference on Wednesday that 'there is a clear consolidation of the industry and there is a simplification of the business model.'
The banks which will survive going forward are either regional lenders, such as German savings banks, or banks with focused business models and a global presence, he said.
'There is a tremendous opportunity to take market share organically but, frankly, inorganically as well,' Jain said.
Asked what role Deutsche Bank could play in the consolidation, Jain said, 'I think I was very clear that there is a lot of work that lies ahead for the banking industry and Deutsche Bank in particular.'
Deutsche Bank is still working on meeting global rules on capital and risk, Jain said, adding, 'We are not at the finishing line.'
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