, Columnist
Deutsche Bank's Chinese Hurdle
The State Administration of Foreign Exchange is reviewing applications to move large sums of money offshore.
This article is for subscribers only.
Surprising as it may sound, a small Chinese bank saddled with higher-than-average soured debt could be the answer to some of Deutsche Bank's woes.
Late last year, the German lender agreed to sell its 20 percent stake in Huaxia Bank to PICC Property & Casualty for as much as 25.7 billion yuan ($3.9 billion). The transaction would give Deutsche Bank's ratio of equity to risk-weighted assets -- a key resilience measure -- a significant boost and could add about 40 basis points to its core Tier 1 capital ratio1474947133517 of 10.8 percent, Chief Financial Officer Marcus Schenck said on the company's second-quarter earnings call in July.