Deutsche Bank Recommendation - Basel III
Autor: Trúc Anh Nguyễn • December 10, 2017 • Case Study • 523 Words (3 Pages) • 1,036 Views
Under the influence of the global financial crisis, Deutsche will need to consider many of its activities - finance, credit, capital management, asset management, liability to understand what they must do. to adhere to and how to make their compliance profitable, while also building resiliency and flexibility when needed. Although the final rules are almost certain to differ from the proposal in some key respects, in most cases only the numbers will change - the effect will be as wide as in the drafts. The text is currently under review. In the crisis, the stability of financial operations needs to be heightened, and then the bank needs to rethink the risks that may be encountered in order to find a profit opportunity. As soon as the Basel III standards are in place, Deutsche Bank needs to take measures to meet these standards, especially capital standards.
Deutsche Bank is involved in investment banking (sales, business, start-up, consultancy ...) through investment banking and corporate sector, as well as lending and deposit services. through the trade department. When the Basel III agreement was reached in 2010, Deutsche Bank was a global organization with a large share of revenue coming from outside Germany - created by investment banking. For investors, Basel III has raised concerns that Deutsche Bank needs to issue new equity to meet the requirements, thereby reducing the value of its current stock. In addition, profits in the banking sector have fallen steadily since the crisis, and investors are worried that tightening requirements will reduce profitability.
In my opinion, Deutsche Bank should consider the following options to increase capital reserve: buy a retail player, build a business, or expand a small existing operation. In particular, M & A options are a good option at the moment when, during a crisis, M & A deals are likely to be more affordable, more cost effective, and more readily available. Meanwhile, Deutsche Bank is
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