Deutsche Bank-Commerzbank merger plan receives backing of German officials

The possibility of merging Deutsche Bank AG and Commerzbank AG has won the backing of German officials who are seeking a new champion that would protect the nation’s economy from an exodus of foreign capital.

The government is in favor of a tie-up between its two biggest banks to create a heavyweight that would finance Germany’s export-oriented economy, according to people involved in the discussions. A merger could ensure credit remains open to German companies even during a financial slowdown when foreign investors might withdraw capital, the people said.

Germany is eyeing a domestic solution to prepare for the next slowdown --