Because more and more financial services are being offered outside the traditional banking sector, fintechs and “shadow banks” are putting pressure on the banking sector to consolidate. And, finally, there is a fourth driver of the debate on consolidation: the poor profitability of European and, not least, also German institutions.
To backtrack, in 2010–12, the country experienced strong surges of capital inflows, as the country became a magnet for capital that was looking for a home that had both good yield and excellent growth potential. As the dollars were converted to buy domestic assets, peso liquidity in the system grew.