FRANKFURT (MNI) – Deutsche Bank is planning to raise E8 billion to
E9 billion via a rights issue in order to meet new capital and liquidity
requirements being hammered out in Basel, the Financial Times reported
Friday.
The newspaper cited people close to the plan as saying that
Germany’s biggest bank could announce the offer by Monday or Tuesday,
and that it could prompt other banks around the world to follow with
similar fund raising exercises.
Deutsche Bank will likely explain the rights issue as part of a
plan to increase its 29.9% stake in Postbank, the report said, though
less than half of the nearly E4 billion in the remaining holding in the
post office bank is available.
Deutsche’s tier-one capital ratio stood at 11.3% as at the end of
June, putting the German bank in the mid-range of its rivals, the FT
said.
The Basel Committee on Banking Supervision is expected to approve
new capital and liquidity measures on Sunday.
Basel III is expected to include an increase in the minimum core
tier-one capital requirement to 5% of risk-weighted assets from the
current 2%.
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