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German economy benefits when banks strengthen capital: FinMin
March 6, 2017 / 5:18 PM / 5 months ago

German economy benefits when banks strengthen capital: FinMin

The logo of Germany's largest business bank, Deutsche Bank is seen in front of one of the bank's office buildings in Frankfurt, Germany, October 27, 2016.Kai Pfaffenbach

BERLIN (Reuters) - Germany welcomes efforts by banks to increase capital, the finance ministry said on Monday, declining to comment specifically on plans by Deutsche Bank (DBKGn.DE) to raise 8 billion euros ($8.47 billion) by issuing new shares.

"As you know, we generally do not comment on business decision of individual banks," finance ministry spokesman Juerg Weissgerber said during a regular government news conference.

"But we generally welcome it when banks strengthen their capital base. This is in the interest of the German economy to be able to be supplied with international financial services through stable banks," he added.

Shares in Deutsche Bank were down more than 6 percent by 1200 GMT after the lender announced its fourth capital increase since 2010 - a move that Chief Executive John Cryan had recently declared a last resort.

Reporting by Gernot Heller and Matthias Sobolewski; Writing by Joseph Nasr; Editing by Georgina Prodhan

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