A combination of their investment banking unit, or a merger of asset managers – UBS and Deutsche Bank, the two biggest banks in their respective markets – have mulled several cooperation models. In June, the two heads of finance are said to have met in secret in Italy’s business capital of Milan.

But nothing has so far come of it and Felix Hufeld, the head of Germany’s financial regulator Bafin has now voiced his reservations about the potential tie-up. He doesn’t expect a major merger in the coming two years, he told a conference in Frankfurt according to «Handelsblatt». The companies had enough on their plates already, with cost cuts and other homework waiting to be done.

No Good Reasons for Merger

He added that a merger between banks only made sense if the acquirer were able to give good reasons for a takeover to shareholders – and that wasn’t currently the case, Hufeld said.

UBS in any case has moved to pursue a new growth strategy, as was reported by finews.com. The Swiss giant is hunting for partnerships across the world.