Deutsche Bank warns of a risk of Europe’s dependence on foreign banks

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FRANKFURT (Reuters) – Deutsche Bank chief executive Christian Sewing warned on Friday of a risk of Europe becoming dependent on foreign banks, equating the threat in the sector to that of energy , which caused a crisis on the Old Continent.

“We urgently need to change course on this if we are not to depend primarily on foreign banks to fund Europe’s future,” he said at the European Banking Congress in Frankfurt.

“And no one should take this threat lightly,” he added.

Christian Sewing, who has long argued for the strengthening of the weight of European banks compared to their American and Chinese counterparts, criticizes the European supervisory authorities for not benefiting from a stable and less restrictive regulatory environment.

“It is becoming increasingly clear that the current regulatory framework does little to strengthen European banks,” he said, saying some rules may go too far.

The President of the European Central Bank (ECB), Christine Lagarde, who participated in the same congress, for her part warned against an easing of regulations.

“Too loose regulation would make banks more exposed to shocks and less able to sustain the transitions that our future growth will depend on,” she said.

(Report Tom Sims and Marta Orosz; French version Claude Chendjou, edited by Kate Entringer)

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