Headlines
Europe's patchwork of regulations is holding investors back, says German banking head
Published by Global Banking and Finance Review
Posted on October 17, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on October 17, 2025
By Christian Kraemer and Maria Martinez
WASHINGTON (Reuters) -International investors have shown renewed interest in Germany at this week's IMF meetings in Washington, but Europe's fragmented regulatory framework is holding them back, the head of the Association of German Banks told Reuters.
"Many are holding back because Europe is still a patchwork of different national regulations," Heiner Herkenhoff said in an interview on the sidelines of the International Monetary Fund gathering. "We urgently need to address this."
He called for a unified and liquid capital market in Europe. "Unfortunately, we've been working on that for far too long already," Herkenhoff said.
INVESTORS' INTEREST IN GERMANY ON THE RISE
International investors are showing more interest in Germany following the new government's announcement of a 500 billion euro ($585 billion) infrastructure fund to modernise the country.
"There is momentum that we should seize," Herkenhoff said.
Reviving growth in Europe's largest economy is Chancellor Friedrich Merz's top priority after two years of economic contraction. The government says Germany needs to attract more private capital to complement the surge in public spending, making it crucial to improve Germany's appeal to investors.
The number of foreign investments in Germany fell in 2024 for the third year in a row.
Finance Minister Lars Klingbeil met around 50 investors on Thursday in Washington at an event hosted by the British bank Barclays. Amid heightened global uncertainty and rising U.S. protectionism, Berlin is seeking to position Germany as a safe, predictable destination for investors.
Investments in climate protection, renewable energy, defence and artificial intelligence are particularly in demand, Herkenhoff said.
Securitisations, in which loans are bundled together and then sold, could also help attract investors. However, Herkenhoff said the most recent proposals from the European Commission in this area were complex.
"It is also important that capital requirements are not further tightened - otherwise demand would drop significantly," Herkenhoff said.
($1 = 0.8540 euros)
(Reporting by Christian Kraemer. Writing by Maria Martinez. Editing by Friederike Heine and Mark Potter)