The Chinese central bank, the People’s Bank of China (PBOC) has granted approval to allow Germany-based lending giant Deutsche Bank to act as the primary dealer in open market business, media reports said. Deutsche Bank becomes the first bank from Europe to obtain this qualification.
Deutsche Bank and PBOC will carry out open banking activities such as repurchasing of treasury bonds, policy financial bonds, central bank bill issuance and other trading instruments.
In this regard, Rose Zhu, the bank’s chief country officer in China told the media, “This PBOC appointment recognises the strength of Deutsche Bank’s capital markets franchise, and reflects China’s determination to continue opening up its capital markets. The rapid development of the China market provides broad opportunities for global participants and Deutsche Bank will continue to deepen the China market, leverage its global network, and exercise best practice risk management to support the country’s continuous capital markets opening and development.”
Last month, it was reported that Deutsche Bank is replacing its global pricing engine for emerging-market currencies in London with one in Singapore. This is because of the level of surging trading in the Asian continent and also the increasing importance of China’s renminbi.
Deutsche Bank also plans to close its branches in Germany and this could lead to 400 to 450 people losing their jobs in the country, media reports said. The bank is planning to eliminate around 20 percent of its workforce in a four-year restructuring plan, which was announced in 2019. The bank also announced last year that it plans to close 100 out of its 500 Deutsche Bank-branded branches.