Financial Times FT.com

Landesbanken ready for sector consolidation

By James Wilson in Frankfurt

Published: June 5 2009 02:07 | Last updated: June 5 2009 02:07

The main owners of Germany’s Landesbanken have given a political commitment to consolidate the sector before 2011, in a sign that the financial crisis will spark a long-awaited restructuring of the most troubled part of the country’s banking system.

Politicians representing Germany’s regional governments said there had to be “adjustments in capacity and focus” within the Landesbank sector after a meeting with national government representatives, who are pressing for a shake-up.

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