trending Market Intelligence /marketintelligence/en/news-insights/trending/6KS2kTC3wOreaNQ7zDc1vA2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Report: ECB, BaFin favor Deutsche Bank merger with European peer

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity

Report: ECB, BaFin favor Deutsche Bank merger with European peer

The European Central Bank and German financial regulatory authority BaFin are inclined toward Deutsche Bank AG merging with a European peer instead of making an all-German deal with local rival Commerzbank AG, people familiar with the matter told Bloomberg News.

The ECB is understood to prefer a cross-border merger to drive integration in Germany's financial markets, while a BaFin analysis performed on a potential combination of Deutsche Bank and Commerzbank suggested the deal will not sufficiently benefit either institution, according to the sources. BaFin would prefer both lenders improve their profitability before going ahead with a possible merger, the sources added.

Both regulators' inclinations are in line with the stance of Deutsche Bank CEO Christian Sewing, who is devising a turnaround plan for the embattled lender.

A deal with a non-German European company would not sit well with some German government officials interested in a large banking entity, Bloomberg said.

In September 2018, Deutsche Bank executives said a merger with Switzerland's UBS Group was the most favorable option among possible European partners, though they contended that the timing was not right due to the German bank's weak share price, the sources told Bloomberg.