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D.Bank CEO says banks to be less profitable-press

Published 09/24/2009, 04:47 AM
Updated 09/24/2009, 04:51 AM
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* Ackermann says new rules to weigh on banks' profit-report

* Notes requirements for holding more capital

* Bank shares fall

ZURICH, Sept 24 (Reuters) - Heavier regulation will result in lower profits for banks, Deutsche Bank's chief said in an article ahead a meeting of the Group of 20 nations that will discuss how to regulate the battered sector.

"The political will is clear: there will be stricter limits for the banking sector and the profitability of the financial sector as a whole will be lower," Deutsche Bank Chief Executive Josef Ackermann said in an article published in Swiss daily Neue Zuercher Zeitung on Thursday.

Plans to improve banking regulation will be among the topics to be discussed at a G20 summit in the U.S. city of Pittsburgh on Sept. 24-25.

High on the agenda of global regulators and leaders are plans to improve capital buffers for banks to hedge against risk.

Ackermann noted in particular the impact of planned new rules on capital ratios: "Banks will from now on have to hold more capital and of better quality."

By 0843 GMT the DJ Stoxx European banking index was down 1.5 percent. (Editing by Jon Loades-Carter)

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