Commerzbank Sees Opportunity in European Defense, Plans to Finance More Projects
Commerzbank’s risk management chief, Bernd Spalt, told the Handelsblatt in an interview that the bank is prepared to expand its business in the defense sector in the coming years. Spalt noted that the bank sees significant potential in the defense sector, particularly in the context of a sluggish overall economy.
The bank’s engagement in the defense industry currently falls in the low to mid-billions of euros, Spalt said, adding that it is not ruled out that the bank could reach the mid-two-digit billion range in the medium term. This, however, would depend on whether the planned defense spending by the government is actually implemented. The German parliament had recently decided to relax the debt brake for defense spending.
According to the bank’s own guidelines, Commerzbank can finance defense contractors in Germany and all projects involving deliveries to European Union allies, Spalt said. The bank can also participate in defense financing as long as the support of Ukraine in its defense against Russia’s aggression is a declared goal of the North Atlantic Treaty Organization, he added.
However, the bank has so far maintained a ban on financing projects involving nuclear weapons. If Germany were to contribute to a European nuclear deterrent in the future, Spalt said the bank would review this stance and engage in a result-open debate on the issue.