SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank
Annual Report 2010 on Form 20-F
Item 4: Information on the Company 37
Private Clients and Asset Management Group Division
In the retail banking business we face intense competition from savings banks and cooperative banks, other
universal banks, insurance companies, home loan and savings companies and other financial intermediaries.
In Germany, savings and cooperative banks form our biggest group of competitors. These banks generally
operate regionally. In other European countries, private universal banks and savings banks are our main competitors.
The large Asian markets (India and China), where we have opened a limited number of retail branches,
are dominated by local public and private sector banks. However, with deregulation, international financial
institutions are likely to increase their investments in these markets and thereby intensify competition.
Our private wealth management business faces competition from the private banking and wealth management
units of other global and regional financial service companies and from investment banks.
Our main competitors in the asset management business are asset management subsidiaries of major financial
services companies and large stand-alone retail and institutional asset managers. Most of our main competitors
are headquartered in Europe or the United States, though many operate globally.
Regulation and Supervision
Our operations throughout the world are regulated and supervised by the relevant authorities in each of the
jurisdictions where we conduct business. Such regulation relates to licensing, capital adequacy, liquidity, risk
concentration, conduct of business as well as organizational and reporting requirements. It affects the type and
scope of the business we conduct in a country and how we structure specific operations. Currently and in reaction
to the crisis in the financial markets, the regulatory environment is undergoing significant changes. Most notably,
the Basel Committee on Banking Supervision has proposed revised capital adequacy standards that are significantly
more stringent than the existing requirements. A set of new rules regarding trading activities, commonly
referred to as Basel II.5, will significantly affect capital levels relating to our trading book (correlation trading,
securitizations, stressed value-at-risk and incremental risk charge). In addition, more comprehensive changes
to the capital adequacy framework, known as Basel III, were published by The Basel Committee on Banking
Supervision in December 2010. The implementation of Basel III is expected to impose new requirements in
respect of regulatory capital, liquidity/funding and leverage ratios. Further changes continue to be under consideration
in the jurisdictions in which we operate. While the extent and nature of these changes cannot be
predicted now, they may include a further increase in regulatory oversight and enhanced prudential standards
relating to capital, liquidity, employee compensation, limitations on activities, and other aspects of our operations
that may have a material effect on our businesses and the services and products that we will be able to offer.
In the following sections, we present a description of the supervision of our business by the authorities in Germany,
our home market, the European Economic Area, and in the U.S., which we view as the most significant
for us. Beyond these regions, local country regulations generally have limited impact on our operations that are
unconnected with these countries.