Deutsche Bank CEO says new rules crimp ability to provide loans

FRANKFURT Sat Nov 9, 2013 8:11am EST

Juergen Fitschen, Co-CEO of Deutsche Bank AG gives a speech during an economic conference organized by the conservative Christian Democratic Union (CDU) party in Berlin June 25, 2013. REUTERS/Fabrizio Bensch

Juergen Fitschen, Co-CEO of Deutsche Bank AG gives a speech during an economic conference organized by the conservative Christian Democratic Union (CDU) party in Berlin June 25, 2013.

Credit: Reuters/Fabrizio Bensch

FRANKFURT (Reuters) - German companies need to diversify their funding as the implementation of new bank safety rules makes it harder for banks to provide loans, Deutsche Bank (DBKGn.DE) co-Chief Executive Juergen Fitschen told Germany's Boersen Zeitung.

"Companies need to prepare for greater uncertainty when it comes to the availability of bank loans and should strengthen their resilience," Fitschen said in an opinion piece published in Saturday's edition of Boersen Zeitung.

Pressure on banks to cut down the size of their balance sheets, and the need to set aside more money for problem loans, means corporations should use capital market instruments, such as issuing shares and bonds, as a way to raise funds, Fitschen said.

(Reporting by Edward Taylor; Editing by Louise Heavens)

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Comments (1)
SeniorMoment wrote:
Deutsche Bank is the 12th most important company in the world and from what I have read it is highly under capitalized in at least some of the nations it does business in, so it is never a surprise when this bank is required to increase the investment supporting all the loans it makes.

For why I call it the 12th most important see:
http://www.newscientist.com/article/mg21228354.500-revealed–the-capitalist-network-that-runs-the-world.html#.Un7alVPTkdU and wonder why our national government and international organizations allow such a great concentration of wealth along with power greater than that held by national heads of state.

Nov 09, 2013 8:02pm EST  --  Report as abuse
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