April 25, 2018 / 4:26 PM / 4 months ago

Deutsche Bank gets permission to use Postbank deposits more widely

FRANKFURT (Reuters) - The European Central Bank will allow Deutsche Bank (DBKGn.DE) to use deposits from its Postbank division elsewhere in the group, a spokesman for the German bank said on Wednesday, a move that may reduce the cost of financing its various operations.

FILE PHOTO: Logos of Deutsche Bank AG are seen in Tokyo July 16, 2014. REUTERS/Toru Hanai/File Photo

The bank, Germany’s largest, has been under pressure to cut costs and return to profitability after three years of losses. Deutsche Bank had been seeking permission to use the deposits more freely for some time.

The funds will not be used for risky ventures in investment banking.

“Deutsche Bank received approval,” the spokesman said.

The ECB, which supervises Deutsche Bank, declined to comment.

Deutsche Bank is in the process of integrating Postbank, the retail banking business once owned by the German postal service, with its own retail banking operations to save costs.

The new business will have 20 million customers with about 325 billion euros ($395.92 billion) in deposits, according to Deutsche Bank.

($1 = 0.8209 euros)

Reporting by Andreas Framke and Frank Siebelt; Writing by Tom Sims. Editing by Jane Merriman

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