SocGen’s Oudéa sees opening for EDIS, M&A after 2020
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BANKING

SocGen’s Oudéa sees opening for EDIS, M&A after 2020

Prospects for a European deposit insurance scheme (EDIS), together with technology, allow a relatively upbeat assessment on bank merger opportunities, according to Société Générale CEO Frédéric Oudéa.

European Parliament elections and a new European Commission could lay the groundwork for cross-border bank mergers from next year, Oudéa tells Euromoney.

Frederic_Oudea_SocGen-May_2019-160x186

Frédéric Oudéa,
Société Générale

The CEO, who is also president of the European Banking Federation, sees a good chance that the EU will prioritize its banking and capital markets union reforms from next year – including an EDIS.

He says clearer progress on that front will then allow banks to do their part in integrating Europe’s financial sector: pre-empting a longer-term move to bigger and more pan-European capital markets.

“A roadmap can allow players to anticipate closer European financial-sector integration, and start to build a business model that will benefit from that roadmap,” he says.

The chief executive was speaking to Euromoney as part of the magazine’s 50th anniversary coverage.

“We should have a few pan-European diversified banking models, the JPMorgan, Bank of America or Citi of Europe: multi-local banks with a strong foothold and a broader base in retail, with corporate and investment banking, and perhaps asset management,” he continues.

Oudéa sees more European banks with a balance sheet of about €2 trillion: similar to these US banks, and to HSBC and BNP Paribas.

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