Deutsche-Commerz merger would birth giant G-Sib
The combined bank would likely attract 2.5% G-Sib surcharge
The merger of German lenders Deutsche Bank and Commerzbank would likely create a global systemically important bank (G-Sib) on a par with US giant JP Morgan, Risk Quantum analysis suggests.
A tie-up between the two has been floated as a means to restore Deutsche to profitability and cut expenses. But the combined entity would probably be bumped into the current highest G-Sib surcharge bucket, alongside JP Morgan, thereby attracting a capital add-on of 2.5% of its risk-weighted assets.
A bank
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