Deutsche, Commerzbank ready for SIFI capital rules

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November 2, 2012 7:42 PM EST

Deutsche Bank on Friday signalled it was well prepared for new rules which force it to add an extra capital cushion after regulators said it was among four global banks which can threaten the international financial system.

Late on Thursday, regulators said Citigroup Inc , Deutsche Bank, HSBC and JPMorgan Chase & Co will need to hold extra capital to absorb potential losses.

Deutsche Bank declined to comment on the decision by the Financial Stability Board, but referred to the German lender's investor day presentation from September 12 which shows the bank already anticipated its inclusion in the list.

At the time, Deutsche Bank said it would strive for a core tier one capital ratio in excess of 10 percent by 2015.

The four global banks will be required to hold an extra 2.5 percent of common equity as a percentage of risk-weighted assets on top of a 7 percent minimum being phased in from January, according to the Financial Stability Board, a regulatory task force for the group of 20 top economies.

Commerzbank said the bank's exclusion from the list of systemically important financial institutions did not come as a surprise.

"By focusing on a client-focused core business, and by reducing risks we took into consideration the fact that we no longer fulfil the criteria for being among the global systemically relevant banks," Commerzbank said in a statement on Friday.

Commerzbank said it would continue to win business from corporate and private clients in Germany and Poland.

(Reporting By Edward Taylor; Editing by David Cowell)

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