Financial market experts critically assessed a possible merger of Deutscher Bank and Commerzbank. According to a survey by the Center for European Economic Research (ZEW), only 15 percent of the respondents expect the positive effects of such a merger to be on the German financial system. Nearly 80 percent of respondents fear that systemic risks.
ZEW President Achim Wambach warned that the discussed new bank could be dangerous because of its size. "An increase in systemic risk is to be expected and should be considered when it comes to the creation of a new major bank," said Wambach. The two Frankfurt institutions had announced on Sunday, "open-ended discussions about a possible merger record".
A majority believe that a merger would not bring any appreciable economies of scale, which would increase the competitiveness of the then merged major bank. Nearly 55 percent do not expect the new bank would be more competitive internationally than the two previous companies. Nearly 80 percent also fear an increase in systemic risk, should it come to the merger.
The majority negative attitude of respondents to a possible major banking merger is directed, according to the information, but not against large banks per se. Slightly more than half of the experts agreed with the statement that the domestic economy needed a large German bank. Almost 31 percent disagreed.
Deutsche Bank CEO Christian Sewing, on the other hand, sees many good reasons for a merger with Commerzbank. He wanted to convince the sitting since noon board of the largest domestic private bank of the meaning of such a deal with the smaller competitors, Reuters reported, citing a person in the immediate vicinity of the CEO. One more person said that German bank would not have begun formal negotiations with Commerzbank if they expected them to fail.