Saturday 17 August 2019

Regulators set to cut Deutsche Bank slack

The Deutsche Bank headquarters in Frankfurt, Germany. Photo: REUTERS
The Deutsche Bank headquarters in Frankfurt, Germany. Photo: REUTERS

Reuters

Deutsche Bank is sounding out regulators about lowering its capital cushion as a way to help finance its impending restructuring, according to people with knowledge of the matter.

Germany's biggest lender has discussed lowering its common equity tier one ratio - a key measure of financial strength - with German financial regulator Bafin and the European Central Bank, the people said. The authorities are generally positive about CEO Christian Sewing's restructuring plans, they said. Sewing is putting the finishing touches on a plan that may result in the lender's deepest overhaul in decades, including the loss of as many as 20,000 jobs.

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The costs might run into the billions of euro, analysts estimate, and the measure could help Sewing pay for the restructuring while avoiding a capital increase that would dilute existing shareholders, other people have said.

Irish Independent

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