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Banks No Longer 'Float Above Their Countries': Deutsche

Banks' countries of origin have become important again and Deutsche Bank will continue its expansion in its home market, as well as in emerging markets and the U.S., Anshu Jain, head of the corporate and investment bank at Deutsche Bank, told CNBC in an interview.

Jain, who will take over as Deutsche Bank co-CEO in June, also said that Europe has made some "tremendous progress" in dealing with its crisis in the past six months, citing the European Central Bank's two Long-Term Refinancing Operations (LTROs) and the increase in the size of the European Stability Mechanism (ESM), the euro zone's bailout fund.

"There was a time when global banks floated above their countries," he told "U.S. Closing Bell."

"You didn't really look at nationality. At this point, I would say country of origin is more important than before," Jain added.

Rating agencies have downgraded banks' ratings in step with cuts in the ratings of their countries of origin. The Financial Times reported that big banks are bracing for another round of ratings cuts as the crisis continues.

Stocks and the euro came under pressure last week after news of sharp withdrawals of deposits from Greek banks but Jain said he wouldn't talk about "runs" on banks.

"Undoubtedly the situation in Greece is creating worry. And it is legitimately a source of concern, but I wouldn't nearly talk about runs on banks," he said.

Jain believes it is "in no-one's interest" for Greece to leave the euro but, if that were to happen, the main question would be how the devaluation would take place, whether it would be an uncontrolled or an orderly one.

"In the latter case, I could even imagine a non-disruptive way of moving on," he said. "Clearly, there is a tail risk event associated with a dramatic devaluation which frankly, we don't foresee."

The situation in Europe apart from Greece is "pretty encouraging," with Italy, Spain, Portugal and Ireland making "tremendous progress towards significant reform," according to Jain.

"So the real issue right now is exactly what the resolution to Greece would be. If we can get through that, and it's a big 'if', I actually think there is reason to be long-term optimistic about Europe. "

- Reported by Maria Bartiromo, Written by Antonia Oprita, CNBC.com

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