PARIS/FRANKFURT - Deutsche Bank's race to comply with Basel capital requirements ahead of schedule is piling pressure on some straggling rivals to do the same and convince investors of their financial muscle.
Germany's biggest bank preempted the unveiling of the long-awaited new Basel III regime by announcing a 9.8 billion euro ($12.83 billion) cash call on the same day.
It pledged to meet Basel rules by 2013, five years sooner than necessary, despite the purchase of retail lender Deutsche Postbank that will absorb most of the fresh capital.
This will make it harder for other European banks facing potential capital shortfalls like France's Credit Agricole or Germany's Commerzbank to bide their time.
"Reaching Basel targets before the official schedule will, I think, become a point of excellence...There will be some pressure on other banks that are not able to meet this sort of target," said Konrad Becker, analyst with Merck Finck.
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