SocGen CEO warns of obstacles to big bank mergers

Tuesday, 07. May 2019 09:52

The Chief Executive Officer of Societe Generale, Frederic Oudea (pictured), warned about "fundamental obstacles" to the consolidation of the European banking industry, according to an interview with the Financial Times published on Tuesday. The executive stressed that mergers of big banks on the continent "make sense" in the long-term, but are hindered by national regulations on capital and liquidity, as well as different bankruptcy rules from country to country across the European Union.

Oudea's comments come weeks after Germany's two biggest lenders, Deutsche Bank and Commerzbank ended their merger talks, arguing that the integration would "not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements."

Related Links: Deutsche Bank AGSociété Générale S.A.Commerzbank AG
Baha Breaking News (BBN) / FH