DAVOS, Switzerland (Reuters) - An excessive crackdown on the banking industry would undermine efficient markets and jeopardize the health of the wider economy, the head of Germany’s Deutsche Bank (DBKGn.DE) said on Wednesday.
“We could all be losers in the end if we don’t have an efficient market in place any more,” CEO Josef Ackermann told reporters at the World Economic Forum.
“Some of the activities would move to the unregulated sector and at the end I think you wouldn’t have better, more resilient and more efficient markets.”
Moves to limit bank size were misguided, since they risked creating small, fragmented players ill-equipped to cater to the needs of global trade and production, he added.
The issue of financial industry regulation is dominating discussions in Davos, following U.S. President Barack Obama’s plans to tax and curb big banks.
Reporting by Ben Hirschler; Editing by Hans Peters