FRANKFURT, June 10 A consolidation of German
landesbanks is unlikely in the foreseeable future, according to
the head of Norddeutsche Landesbank (NordLB).
Currently there are "no valid merger scenarios", Gunter
Dunkel told German financial daily Handelsblatt in an excerpt of
an article in Monday's edition.
Even if the new business models of the seven independent
landesbanks prove to be sustainable, he said "mergers were
extremely difficult and rarely successful".
Many landesbanks required bailouts during the financial
crisis, since the regional state-owned lenders often engaged in
highly risky businesses with the tacit permission of local
politicians on the board.
For that reason, they are often compared to Germany's
version of Cajas, the troubled Spanish savings banks that are
behind Madrid's request for a European bailout.
(Reporting by Christiaan Hetzner; Editing by Jon Loades-Carter)