Public banks in Germany view a potential takeover of Commerzbank by its Italian competitor, Unicredit, as a significant opportunity. Thomas Groß, President of the Federal Association of German Public Banks (VÖB), told the “Handelsblatt” that mergers always create benefits for competing institutions. He explained that when instability or internal discussions arise at one competitor, other banks benefit, both in securing customer business and in recruiting talent.
The VÖB, which represents the interests of state and development banks, believes that a major consolidation would open up further possibilities for all other active banks in the market, including public institutions. Groß, who also heads the State Bank of Hesse-Thuringia (Helaba), noted that Commerzbank is concerned that if it merges with the German Unicredit subsidiary, HVB, many corporate clients might reduce their credit exposure to avoid becoming overly dependent on a single institution.
According to Groß, public banks have the capacity to fill this potential gap and expand their lending business. He stated that the group of public banks is large enough to provide additional necessary credit. They currently account for roughly one-third of the market in corporate financing across Germany. Furthermore, Groß believes there is no risk of financing bottlenecks in Germany due to the impending bank merger.
