Think Italian Banks Are Bad? Look at Germany!
If a new government can’t reform the financial system, Europe won’t be able to punch its weight globally.
No country for new banking?
Photographer: CHRISTOF STACHE/AFPA Deutsche Bank analyst got himself in trouble just before Germany’s elections for writing something few ever say out loud: The country’s banking sector needs serious reform. The sclerotic industry was mostly ignored for 16 years by Chancellor Angela Merkel, who will be caretaker until a new government is formed — a process that might take months. The country could use a fresh opportunity to kick-start long overdue structural changes to the system.
Many Germans view finance as a servant of industry rather than an industry itself. But transforming Germany from a combustion-engine driven economy into something fit for a greener and more digital world requires a dynamic banking sector that can fund investment in technology and offer savers better choices.