The head of Germany’s BdB banking association said that cross-border mergers in the European banking industry were becoming more of a necessity, given the risks of weakened financial institutions for the euro zone, reported Reuters.
“From my point of view, there is no other way (than cross-border M&A),” he said in an interview with business daily Handelsblatt published on Tuesday, June 11.
“It would be something positive. Strong European banks will be good for the European economy.”
Over the past twelve months, many of the leading European banks lost around a quarter of their market capitalization in a difficult interest rate environment, while their US rivals were in a better situation which meant they were getting access to more transactions, he said.