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Western EuropeJanuary 22 2021

ECB’s push on cross-border bank mergers faces hurdles

Lack of a fully fungible capital and liquidity regime may limit large-scale mergers between eurozone countries.
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ECB’s push on cross-border bank mergers faces hurdles

Fitch Ratings anticipates significant obstacles to the European Central Bank’s (ECB) aim to encourage cross-border consolidation in the eurozone banking sector to boost resilience.

“We believe the lack of a fully fungible capital and liquidity regime and a single deposit insurance scheme across the eurozone continue to limit the attractiveness of large-scale mergers,” the rating agency said in a note.

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