The possibility of merging Deutsche Bank and Commerzbank has won the backing of German officials who are seeking a new champion that would protect the nation’s economy from an exodus of foreign capital.
Bloomberg News reports that the government is in favor of a tie-up between its two biggest banks to create a heavyweight that would finance Germany’s export-oriented economy, according to people involved in the discussions. A merger could ensure credit remains open to German companies even during a financial slowdown when foreign investors might withdraw capital, the people said.
Germany is eyeing a domestic solution to prepare for the next slowdown -- and ensure its vast companies stay afloat -- as the European Union drags its feet on the banking and capital markets union many bank CEOs and regulators say the continent needs to kickstart more cross-border deals.
Hit the link below to access the complete Bloomberg News article:
Have something to tell us about this article?