Ecb Poised to Approve Unicredit's Investment in Commerzbank, Source Says
The European Central Bank is poised to give Italy's UniCredit the green light to build up its stake in German rival Commerzbank, a move that could pave the way for Europe's biggest cross-border banking deal since the global financial crisis. ECB staff are likely to complete their analysis of UniCredit's purchase of 29.9% of Commerzbank by early March, setting the stage for approval by the regulator's Supervisory Board later in the month. The most recent briefing from the ECB's supervisory experts, which included different scenarios to evaluate the banks' solidity, was positive.
- The implications of this deal could be far-reaching, particularly if it sets a precedent for increased consolidation among European lenders, potentially leading to a loss of diversity and competitiveness in the banking sector.
- What are the long-term risks of concentration in the European banking market, and how might policymakers mitigate these concerns through targeted regulatory measures?