ECB Stance on Cross-Border Bank Mergers

The European Central Bank (ECB) will not obstruct cross-border bank mergers, according to supervisory chief Claudia Buch. This comes as Germany's Commerzbank seeks to avoid a takeover by Italy's UniCredit. Despite some political resistance, ECB officials find such mergers favorable for integration.

It is not the European Central Bank's job to stop cross-border bank mergers, supervisory chief Claudia Buch stated on Wednesday amid Commerzbank's strategy to resist a potential takeover by Italy's UniCredit.

"Whatever we can do within supervision is not to stand in the way of more cross-border integration," Buch articulated at a conference in Riga. "Anything we can do within our remit to make sure that cross-border activity is not hampered, that we certainly do."

Some political figures in Germany had hoped that the ECB, which must approve any major transaction, would oppose the deal. However, ECB officials, including President Christine Lagarde, have clarified that they view mergers as beneficial for integration.

(With inputs from agencies.)