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European Banks Eyeing Mergers See Gridlock on Friendly Rules

  • The ECB says euro-area consolidation would boost profitability
  • Leaders’ summit this month is unlikely to solve vexed issues
A railway crossing sign stands outside the European Central Bank (ECB) headquarters in Frankfurt. 

A railway crossing sign stands outside the European Central Bank (ECB) headquarters in Frankfurt. 

Photographer: Krisztian Bocsi/Bloomberg
Updated on

The European Central Bank and the lenders it oversees are running out of time in their push for rules to foster cross-border mergers.

European Union regulations need to change so consolidation makes financial sense for lenders seeking to increase revenue and lower costs, the ECB and firms say. But their shared urgency has been stymied by politicians from Germany and smaller states who want to make sure closer ties don’t expose them to losses banks run up in other countries.