World, As Seen from Trinity Street, Dublin, Ireland

European Union might end up with one bank to rule them all


European bankers think it is good if there is a consolidation battle in the banking sector. A European mega-bank could then emerge that could compete with American counterparts. That is what Credit Suisse CEO Tidjane Thiam and his colleague Carlo Messina from the Italian bank Intesa Sanpaolo say.

Thiam thinks that mergers between large European banks are desirable, but something still needs to be done. For example, taxpayers must be convinced that such large banks do not become a threat to the financial system.

“We have to convince the public that large banks can be safe.”

Messina also thinks that a number of European mega-banks is necessary. “If you look at Europe, the United States and China, it is imperative that some” champions “emerge who can compete.” Messina is thinking of a bank on the scale of the American bank JP Morgan Chase. In addition to consolidation in the sector, the rules in the various European countries must also be corrected, according to the Italian. “That is Europe’s problem.”

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World, As Seen from Trinity Street, Dublin, Ireland

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