March 6, 2017 / 12:14 PM / 10 months ago

German economy benefits when banks strengthen capital - finance ministry

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 (6.9 billion pounds) 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.

    ($1 = 0.9447 euros)

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

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