Deutsche Bank wants to maintain global investment bank

Deutsche Bank - External

Anshu Jain, Deutsche Bank's co-chief executive officer, Tuesday made a pledge for remaining a global investment bank, saying that European companies will increasingly need these amid tighter bank rules.

'Europe's (economy) needs a better balance between bank lending and capital markets. Deutsche Bank will be part of that', Jain told a conference at the University in Frankfurt. Europe shouldn't have to solely rely on U.S. banks to provide large and small and medium-size corporates with access to bond markets, he added.

Marketwatch reports that currently, around 65% to 70% of borrowing by European companies are provided by banks and only up to 30% by capital markets, which is the opposite to the funding structure of U.S. companies.

'The logic (for Europe) is inescapable: Leverage ratio requirements go up, (we see) tougher TLAC (total loss absorbing capital demands). (So) I don't see European banks balance sheets' will expand through increased lending to the real economy, he said.

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