Deutsche Bank vice boss Karl von Rohr has warned politicians against making equity capital rules for banks stricter in view of the uncertain economic situation. “We don’t think it makes sense to tighten up some of these instruments now,” he said Frankfurter Allgemeine Sunday newspaper. You shouldn’t lose your balance in the current situation. “For every euro that we do not have to hold as additional equity or pay into the European resolution fund due to regulatory requirements, we can provide between 20 and 40 euros in additional credit volume, depending on the type and collateralization of the loan.” According to Deutsche Bank estimates, there is a potential credit volume of up to 700 billion euros for all banks across Germany, which would not be available to companies due to various regulations.
The Vice CEO of Deutsche Bank is concerned about the high inflation rates. “Our forecast is that we will be at an inflation rate of seven to eight percent over the course of the year. In the event that energy imports are more limited, we could even see ten percent and more,” he told the newspaper.