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October 27, 2011 10:38 am
Josef Ackermann, chief executive of Deutsche Bank and chairman of the Institute of International Finance, a global association of banks and finance houses, described the three-part deal to solve the eurozone crisis as a “satisfying compromise”.
Under the mandatory scheme Europe’s banks will be forced to find about €106bn of extra capital by the end of June to meet a 9 per cent capital threshold, after revaluing sovereign debt at market rate.
Germany’s 13 lenders are estimated to need a further €5.2bn, a figure that is significantly below some analysts’ predictions.
Deutsche Bank has already written down the value of its Greek bonds by more than 50 per cent and said this week it would not need to take additional management action or take public money.
Commerzbank, Germany’s second-largest lender by market capitalisation, said it would also not look for state aid in seeking to reach a sum of €2.9bn in extra capital calculated by the EBA. Commerzbank holds Greek bonds valued at about €2.2bn, the most among German banks.
Eric Strutz, Commerzbank chief financial officer, said: “We can reach the required ratio by means of a reduction in risk-weighted assets in non-core areas, the sale of non-strategic assets or retained earnings, for example. One thing goes without saying: we do not intend to make use of public funds.
“We welcome the fact that the markets now have clarity with respect to the requirements put into place by EBA from mid-2012 onwards.” Commerzbank is due to report quarterly results on November 4.
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