BERLIN, July 6 Germany's Deutsche Bank
will not need to transfer capital holdings to its
U.S. subsidiary to meet the U.S.'s stricter regulatory
requirements, Boersen-Zeitung reported on Saturday, citing an
interview with finance chief Stefan Krause.
"Because of the Americans' definition of capital, we can use
supplementary capital to fulfil these requirements," CFO Krause
was quoted as saying. "For that reason, a transfer of capital
from Germany will not be necessary here."
U.S. regulators are planning stricter rules on how much
equity foreign lenders must hold.
Banks complain equity is the most expensive way to fund
their business, but it is the safest from a taxpayer's or a
regulator's perspective. That is because shareholders are the
first to lose their money in case of bankruptcy.