Low interest rates and lacklustre profitability could spark consolidation in the German banking sector. Despite these challenges, the system remains well capitalised with low NPLs and the prospect of benefiting from Brexit, as Kit Gillet reports.

Reforms at home and a strengthening of EU co-operation are crucial to Germany’s continuing economic health, writes the economist and president of the IFO Institute.

From being an EU stalwart, Germany finds itself divided into supporters and sceptics, with long-serving chancellor Angela Merkel fighting to form a government that can keep the European project on track. Stefanie Linhardt reports.

Andreas Dombret, member of the board at Deutsche Bundesbank, Germany's central bank, tells Stefanie Linhardt about the issues banks thinking of re-locating to Germany would have to consider, the negative consequences lower standards of regulation could bring for financial markets and the risks of a 'no deal' Brexit.

The risks of blind fiscal expansion to generate growth are too great. The priority should fall upon fiscal consolidation and improving the quality of public finances instead.

Has the global harmonisation of banking regulation led to an overly universal approach? International and EU policy-makers should consider introducing less complex regulations for small, low-risk institutions.

Many German banks had their fingers badly burnt in the financial crisis, having disastrously expanded into areas such as Spanish real estate and global shipping. As a result, the country's private banks, sparkassen and landesbanken have largely reverted to type, happy with unspectacular but predictable growth in an oversaturated domestic market.

Commerzbank corporates and markets chief Michael Reuther has nearly 30 years of banking experience, yet his appetite for innovation still burns strongly, as his work to 'industrialise' the German lender's investment bank shows.