Economy, Business and Finance: Banking Supervision Urges Regulation



Although Lautenschläger found the results of a recent positive bank test positive. "The fact that we have stable banks does not mean we will not have a crisis anymore." The day before the head of German financial supervision, Bafin Felix Hufeld, warned he would not say in the regulation.

In addition to Lautenschläger, the head of the European Stability Bailout Fund, SRB, Elke König, may benefit from another wave of mergers between financial institutions. "Debate on consolidation is generally a positive idea," said Lautenschläger. So there are a lot of banks in Germany. Even cross-border mergers could be useful. However, the question arises as to the extent to which fusion partners can achieve synergies.

King talked about cross-border mergers. After all, in such a step he would not be able to deal with the constitution problem under the carpet. However, it is necessary to ensure that mergers do not create institutions that are too large to be abolished without causing enormous damage to the economy as a whole. In the financial crisis of 2007/2008, many countries have saved banks from billions of dollars from taxpayers' money to prevent the collapse of the financial and economic system.

Regarding Brexit's future regulation, König warned that banks from non-EU countries would have to maintain their own rewards if they wanted to do business here. The "mailbox" should not be enough.


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