Germany Mulls Law To Protect Banks From Foreign Takeovers

Germany is considering introducing a law to protect domestic banks from foreign takeovers, the Italian newspaper La Repubblica reported, as Italy's UniCredit seeks a merger with Germany's Commerzbank, Sara Rossi reported for Reuters.

According to the report, Germany could follow Poland's example, which has a law preventing foreign lenders from fully acquiring Polish banks and requires them to remain listed on the Warsaw Stock Exchange. I Photo: Commerzbank

Berlin was reportedly surprised by UniCredit's move to acquire a large stake in state-backed Commerzbank, a move the Italian bank says could lead to a merger. Reuters was unable to confirm La Repubblica's report.

According to the report, Germany could follow Poland's example, which has a law preventing foreign lenders from fully acquiring Polish banks and requires them to remain listed on the Warsaw Stock Exchange.

The source close to the matter suggested that similar measures could be adopted in Germany to protect its domestic banking sector.