Commerzbank dismissed as "nonsense" a report in a stock market newsletter that the bank must present all new credits to the German financial regulator BAFin for approval.
The Prior Boersehad reported this morning, citing banking sources, that Commerzbank's low equity capital has forced BAFin to scrutinize all its new credits.
"That is outrageous. There is no truth to that at all. We are a very liquid bank," a spokesman for the bank said. He said only a tiny proportion of Commerzbank's loans are in the "non repayment category".
He said Commerzbank does inform BAFin what sectors its credits are extended to, but this is part of a regular information exchange which all commercial banks must take part in.
Separately, the spokesman declined to comment on claims by Prior Boersethat Commerzbank has a 600-$900 million credit exposure to Delta Airlines. He said the bank does not comment on individual client relationships.
Commerzbank has been dogged in past weeks by rumours of liquidity problems, categorically denied by the bank, which have dragged the bank's shares down to historic lows.
BAFin was not available for immediate comment.
PA