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Deutsche Bank CEO warns on recession, China and U.S. banks

The logo of Germany’s Deutsche Bank is on display ahead of the bank’s annual shareholder meeting in Frankfurt, Germany, May 23, 2019. REUTERS/Kai Pfaffenbach/File Photo

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FRANKFURT, Sept 7 (Reuters) – Deutsche Bank (DBKGn.DE) chief Christian Sewing, painting a bleaker assessment of the Germany economy, on Wednesday warned that China was a considerable risk for the nation and that Europe needed big banks to fend off American competitors.

Sewing, speaking at a conference in Frankfurt, said Germany would “no longer be able to avert a recession”.

He said the country must now face the “awkward question” of dealing with China, given its “increasing isolation and growing tensions”.

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“Reducing this dependency will require a change no less fundamental than decoupling from Russian energy,” Sewing said.

Sewing renewed calls for eventual cross-board banking consolidation in Europe.

“Size counts in banking – and if we don’t want to hand over the playing field to the Americans, Europe must create the right conditions for big banks,” he said.

“The dominance of American banks is no law of nature,” he added.

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Reporting by Tom Sims and Marta Orosz
Editing by Paul Carrel

Our Standards: The Thomson Reuters Trust Principles.

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