02 February 2012

FT: Deutsche Bank concerned by offer of ECB loans

Deutsche Bank has risked a clash with the European Central Bank by indicating it sees a stigma attached to the long-term help offered to banks to try to ease the eurozone's funding crisis

Josef Ackermann, chief executive, made clear that Deutsche might not take up the ECB’s next offer of unlimited three-year loans because it might be seen as tantamount to government aid that could damage the bank’s reputation.

The ECB’s offer of such loans to eurozone banks has been key to attempts by Mario Draghi, the central bank’s president, to ease market concerns over banks’ access to funding. In December, 523 eurozone banks took €489 billion from the ECB in its first such offer, and banks are widely expected to take part in a second chance to bid for funds this month.

Mr Draghi has said banks should see “no stigma” in using the ECB’s offer. Mr Ackermann said Deutsche had not taken part in December and was reluctant to be seen as needing help. “The fact that we have never taken any money from the government has made us, from a reputational point of view, so attractive to so many clients in the world that we would be very reluctant to give that up”, Mr Ackermann said.

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