AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

The European Central Bank has asked Deutsche Bank to estimate the costs of winding down the trading operations of its investment bank, the first such simulation by one of Europe's biggest banks, Deutsche's finance chief said on Monday.
But Chief Financial Officer James von Moltke said the ECB's request was not an unusual exercise and that it was totally unrelated to Deutsche's internal review of its global investment bank. "We think we are first in the queue here because we are the largest capital markets bank in the ECB's supervision," von Moltke said in an interview with Reuters.
The timing of the simulation is sensitive because Deutsche Bank's investment banking division has been losing market share and key staff, contributing to three consecutive years of losses at Germany's largest lender. Last week, Deutsche ousted its chief executive John Cryan and Marcus Schenck, one of the heads of the investment bank, also left. The management upheaval has added to speculation that Deutsche Bank might slim down its sprawling investment banking operation.
An ECB spokeswoman declined to comment on individual banks. "There are in general various exercises such as recovery plans which the supervisor asks banks to provide," she said. "In any case, the ECB does not intervene in any business model decision of banks." Deutsche Bank, by talking publicly about normally private supervisory exercises, wants to avoid the impression that regulators are worried about the investment bank.
The bank has stabilised since late 2016, when speculation mounted that it would need a government bailout in the wake of huge fines from US authorities. Global regulators are working on unified procedures for such exercises like the one that Deutsche is conducting. Regulators are primarily focused on big global banks that trade risky securities like derivatives.
The regulators have categorised some banks as "sytemically important" because of their size. They have identified Deutsche Bank as the most systemically important bank in the euro zone. Regulators in Britain have already conducted a similar simulation with Deutsche's London-based arm.
The exercise can shed light on whether a sudden halt of trading activities would require government guarantees or support from taxpayers, the Sueddeutsche Zeitung said in its Monday edition. The German paper was the first to report the news of the simulation. "This (the exercise) doesn't have any connection to any sort of state aid," von Moltke said. Deutsche Bank began the task in late January and expects to conclude it in the third quarter.

Copyright Reuters, 2018

Comments

Comments are closed.