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UPDATE 1-Deutsche Bank CEO warns of serious side effects to ECB rate cut

(Updates with details)

FRANKFURT, Sept 4 (Reuters) - Deutsche Bank's Chief Executive Officer Christian Sewing warned on Wednesday that a further reduction in interest rates by the European Central Bank would have a minimal effect on the economy but risks serious side effects.

The warning comes a week before an ECB policy meeting at which decision markers are leaning towards a stimulus package that includes a rate cut.

Sewing, speaking at a banking conference, said his bank's customers say they would not invest more if credit were 0.10 percentage points cheaper.

A rate cut would "only drive up asset prices and further burden savers," he said.

Lower rates would help those who are indebted or invested in assets, but the majority of the population wouldn't benefit, he said.

"That divides society further," he said.

Banks in Germany and throughout Europe have long complained about the ECB's policy which requires banks to pay to park their cash at the central bank and hurts their bottom lines. (Reporting by Tom Sims, Patricia Uhlig and Hans Seidenstuecker Editing by Michelle Martin and Elaine Hardcastle)