Deutsche Bank sees euro zone remaining intact

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Bank's co-CEO says chances of country leaving single currency bloc have diminished.

Bank's co-CEO says chances of country leaving single currency bloc have diminished.

Deutsche Bank, Germany's largest bank, expects the euro zone to remain intact and its slow pace of recovery to create opportunities for outside investors, its co-CEO said on Wednesday.

Deutsche Bank AG's Anshu Jain told business leaders in Dubai that the chances of a country leaving the single currency bloc had diminished.

Fears of a so-called peripheral euro zone state such as Greece leaving the currency union have haunted both markets and politicians as the region's debt crisis has unfolded.

"Fundamentally, we believe the euro zone will remain intact," Jain said, saying "the market-implied volatility of a peripheral country defaulting or leaving the euro zone has receded".

Attempts to get Greece's debt down to a sustainable level have so far stumbled, with the country's international lenders failing to agree a deal overnight for the second week running.

Jain used his visit to the Gulf region to highlight the opportunities for its sovereign wealth funds to invest in Europe at a time when many of the European Union's economies are struggling to kick-start their economies.

European leaders have flocked to the Gulf states, which have built up large reserves as a result of their oil revenues, to try to drum up investment interest in their economies.

"I think the euro zone will be stable, unexciting but stable and something for outside investors to look to as there is still value," Jain, who is in the Gulf for a week, said.

He also predicted that the world's banking industry would shrink dramatically as a result of the regulations that have followed the financial crisis, warning that regulation could hit the supply of credit to the economy.

"By the time we are finished with the unintended consequences of regulation, my feeling is we will have five to six (global) banks remaining," Jain said.

He predicted his own bank would be one of those left standing.

"Whilst regulation is understandable and desirable, over-regulation would carry the risk of unintended consequences - for example, potentially lessening the supply of credit."

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia builds start-up culture with state oil money

Saudi Arabia builds start-up culture with state oil money

Gov't has previously has found it hard to promote start-ups in...

Why PE's back in vogue in the Middle East

Why PE's back in vogue in the Middle East

Confidence is returning to the Gulf’s private equity market after...

The curious case of David Haigh

The curious case of David Haigh

The story of how the former Leeds United boss went from football...

3
Most Discussed