Helaba and Deka, two public sector banks in Germany, are considering a merger.
The news comes from Germany’s savings banks association.
The banks are reportedly examining ways to cooperate closely, “up to and including a merger”.
This could lead to Germany’s biggest public sector bank based on assets.
What does this mean?
Germany’s banking sector is currently fragmented and this could go some way in bringing it together. Banks are experiencing pressure to consolidate due to, among other factors, increased competition.