Commerzbank CFO: 'Very Difficult' Rate Environment

The video discusses the challenges faced by banks in a negative interest rate environment, particularly in Germany and Italy. It highlights the struggles of small and medium-sized banks and the potential impact on larger banks like Commerzbank. The discussion also covers the importance of economies of scale, digitalization, and regulatory compliance. The video concludes with a focus on balancing capital buffers and dividend payouts, emphasizing Commerzbank's financial strategy and risk profile.

What is a significant challenge for German banks in a negative interest rate environment?

• Low export rates

• High loan-to-deposit ratios

• Excessive cash reserves

• High inflation rates

What is a potential issue for larger banks in the context of negative interest rates?

• Excessive regulatory compliance

• Lack of digitalization

• Similar balance sheet issues as smaller banks

• High interest rates

How does the ECB aim to support banks across Europe?

• By increasing interest rates

• By reducing digitalization costs

• By offering tax incentives

• By providing a level playing field

What is Commerzbank's current capital ratio?

• 15%

• 12%

• 20%

• 10%

What is Commerzbank's mid-term payout ratio for dividends?

• 50% of net profit

• 40% of net profit

• 20% of net profit

• 30% of net profit