German bank regulator tells banks cutting fat is not enough, magazine reports

“No large bank mergers including a German bank have taken place in the recent past” writes Midwest Communications Inc for BERLIN (Reuters) – The head of German financial regulator BaFin called on banks to restructure amid challenges from a weakening economy and persistently low interest rates, the German business magazine Wirtschaftswoche reported on Thursday.Merger talks between Deutsche Bank Since then, Deutsche Bank has announced a restructuring that will eliminate 18,000 jobs.BaFin is not opposed to large tie-ups among banks, including cross-border mergers, Hufeld said, although he added that the risks in carrying out such deals were often underestimated.Many banks have business models that are too complex, he said, and they should ask which activities and products were profitable.

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