The European Central Bank (ECB) is prepared to take any necessary measures to facilitate cross-border bank mergers within the eurozone, according to Claudia Buch, the supervisory chief, who spoke on Wednesday. This announcement comes as Italy's UniCredit is considering a bid for Germany's Commerzbank. As the top supervisor in the eurozone, the ECB will have the ultimate authority on whether UniCredit, Italy's second-largest bank, can increase its stake in its German counterpart to just under 30 percent.
Buch did not specifically name either bank, adhering to the ECB's policy, but her comments further highlight the central bank's support for such transactions. "Whatever we can do within our supervisory capacity is to not obstruct more cross-border integration," Buch stated at a conference in Riga. "We will certainly do anything within our mandate to ensure that cross-border activities are not hindered."
UniCredit initiated discussions with Commerzbank last week after acquiring a stake in its German rival, a move that drew criticism from both the bank and Germany's political establishment, which seeks to maintain Commerzbank's independence. Speaking alongside Buch, ECB policymaker Martins Kazaks criticized the "tendency to make decisions from a national perspective" and expressed a desire for Europe to have larger banks capable of competing globally.
"It's good to have national champions, but if your national champion is a midget on the global stage, it won't significantly impact global competitiveness," said the Latvian central bank governor. Some German political figures hope that the ECB, which must approve any deal, would block the transaction. However, bank officials, including ECB President Christine Lagarde, have clearly indicated that they view mergers as beneficial.
