Deutsche Bank co-CEO sees more Europe bank consolidation: paper

Sat Dec 29, 2012 11:25am EST
 

FRANKFURT (Reuters) - Consolidation of European banks is not yet at an end, and Germany's sector with its many small banks will have to change, the co-chief executive of Deutsche Bank (DBKGn.DE: Quote) told a German newspaper.

"We need pan-European banks. Or else growth countries like China, India, Brazil or Russia will leave us behind," Juergen Fitschen said in an interview published in Boersen-Zeitung on Saturday.

He said consolidation would be unavoidable in Germany. "We have to get away from the idea that it's possible and necessary to have a branch in every small town, especially given the rising use of online services."

Fitschen said Deutsche Bank was mostly in agreement with the proposals of a EU advisory group calling for a separation of banks' riskier activities from their deposit-taking business.

He said, however, the bank did not find proposals worthwhile to separate off market-making once it goes past a certain level and that such a move would impact Deutsche.

On the sale of BHF Bank, which Deutsche has twice failed to get past German regulator BaFin, Fitschen said he was confident a deal to sell the unit to buyout firm RHJ International (RHJI.BR: Quote) would go through.

"To the best of my knowledge, BaFin now has the full documentation," he said.

(Reporting by Victoria Bryan; editing by Jane Baird)

 
Juergen Fitschen, co-CEO of Deusche Bank, delivers his speech during the "German Economic Forum", organized by German weekly newspaper "Die Zeit", in the St.Michaelis church in Hamburg, November 8, 2012. REUTERS/Fabian Bimmer