India-owned Tata Steel had been losing £1 million a day
business2 days ago
The European Central Bank will do "anything" to remove hurdles to cross-border bank mergers in the euro zone, supervisory chief Claudia Buch said on Wednesday, as Italy's UniCredit eyed a bid for Germany's Commerzbank.
The ECB, as the euro zone's top supervisor, will have the final say on whether UniCredit, Italy's second-largest bank, can raise its stake in its German rival to just below 30 per cent.
Buch did not mention either bank, as is ECB's policy, but her words provide further evidence of the central bank's support for such deals.
"Whatever we can do within supervision is not to stand in the way of more cross-border integration," Buch told a conference in Riga. "Anything we can do within our remit to make sure that cross-border activity is not hampered, that we certainly do."
UniCredit entered talks with Commerzbank last week after snapping up a stake in its German rival, drawing criticism from both the bank and Germany's political establishment, who want to keep the lender independent.
Speaking alongside Buch, ECB policymaker Martins Kazaks stigmatised a "tendency to take the decisions from the national perspective" and wished Europe had bigger banks that could compete on a global level.
"It is nice to have national champions, but if your national champion is a midget globally, it is not going to make much difference in terms of the global competitiveness," the Latvian central bank governor said.
Some in German political circles hope that the ECB, whose approval is needed for any deal, would stop the transaction. But bank officials, including ECB President Christine Lagarde, have made clear that they see mergers as desirable.
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