Cooperative banks will be at the forefront of a wave of mergers among lenders in Italy and Germany, the chief executive officers of Intesa Sanpaolo SpA (ISP) and Commerzbank AG (CBK) said.
“The Italian banking system will not be the same next year, I am sure there will be mergers among the cooperative banks so a large domestic competitor may be created,” Carlo Messina, the head of Italy’s second-biggest bank, said at a briefing Nov. 28.
Commerzbank Chief Executive Officer Martin Blessing identified cooperative banks as likely merger candidates when he told the Sueddeutsche Zeitung Economic Summit in Berlin on Nov. 29 there would be a wave of consolidation among lenders in Germany.
Italy’s banks showed the largest combined capital shortfall in the European Central Bank’s review of the euro region’s lenders as the country struggles to emerge from its third recession in six years. Nine Italian lenders failed the ECB’s stress tests while only one German institution didn’t pass.
Some cooperative banks in Germany would have failed the ECB’s stress tests if the newest Basel bank regulation rules had been applied, suggesting that cooperative banks in the country may begin to merge, Blessing said.Germany’s banking system had approximately 2,000 institutions in 2013, according to the BdB Association of German Banks.
Around 300 of those are private banks, including Germany’s two largest lenders, Deutsche Bank AG and Commerzbank. Savings banks and cooperative banks accounted for the remainder.
Italy’s smaller cooperative banks may merge into larger companies to boost returns, Messina said. The country’s lenders were buffeted by the ECB’s stress test, suffering a hit to their capital of 35.5 billion euros ($44.2 billion).
bloomberg.com
“The Italian banking system will not be the same next year, I am sure there will be mergers among the cooperative banks so a large domestic competitor may be created,” Carlo Messina, the head of Italy’s second-biggest bank, said at a briefing Nov. 28.
Commerzbank Chief Executive Officer Martin Blessing identified cooperative banks as likely merger candidates when he told the Sueddeutsche Zeitung Economic Summit in Berlin on Nov. 29 there would be a wave of consolidation among lenders in Germany.
Italy’s banks showed the largest combined capital shortfall in the European Central Bank’s review of the euro region’s lenders as the country struggles to emerge from its third recession in six years. Nine Italian lenders failed the ECB’s stress tests while only one German institution didn’t pass.
Some cooperative banks in Germany would have failed the ECB’s stress tests if the newest Basel bank regulation rules had been applied, suggesting that cooperative banks in the country may begin to merge, Blessing said.Germany’s banking system had approximately 2,000 institutions in 2013, according to the BdB Association of German Banks.
Around 300 of those are private banks, including Germany’s two largest lenders, Deutsche Bank AG and Commerzbank. Savings banks and cooperative banks accounted for the remainder.
Italy’s smaller cooperative banks may merge into larger companies to boost returns, Messina said. The country’s lenders were buffeted by the ECB’s stress test, suffering a hit to their capital of 35.5 billion euros ($44.2 billion).
bloomberg.com
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