Another issue on the cost side are the large branch networks of German banks. Here, consolidation might be a promising strategy. 3. What’s next in financial regulation? Against this challenging backdrop, some may argue that further regulatory reform is a problem, and that it will choke the just recently restarted engine of growth.
But let me be clear: all macroeconomic studies on the impact of regulatory reforms are consistent in stressing that the overall economic benefits by far outweigh the costs. And that means that there is no way around fully implementing the reforms that have already been initiated and finalising their outstanding elements.