Why A Deutsche Bank - Commerzbank Merger Makes Sense
Germany has a considerably fragmented banking system, where a large number of small players cater to local banking needs. In contrast, developed nations like the U.S., U.K. and France have a very concentrated banking industry.
Stricter capital requirement norms and low profitability support consolidation in the German banking system.
Deutsche Bank is the largest bank in Germany with more than EUR 1.5 trillion in total asset, while Commerzbank is the second-largest with an asset-base of about EUR 500 billion. A combined entity should enjoy significant economies of scale.