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ECB Lays Ground for Further Eurozone Bank Consolidation
The ECB's newly published guide on its supervisory approach to consolidation in the eurozone banking sector indicates its openness to large-scale cross-border mergers and acquisitions, Fitch Ratings says, but significant obstacles to pan-European consolidation remain. 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 results of an audience poll at Fitch's recent Credit Outlook conference were in line with this view, with only 5% of respondents expecting cross-border mergers or ... (full story)