FRANKFURT, April 17 (Reuters) - Deutsche Bank (DBKGn.DE) Chief Executive Christian Sewing on Monday rejected plans by the European Union to update bank resolution rules and warned that stricter regulation would boost the "shadow banking sector".
Sewing said the shift toward making resolution the standard instrument for bank crisis management "would be at the expense of our well-functioning national deposit guarantee scheme", according to prepared remarks for the German bank lobby's annual press conference.
European Union plans, due this month, will seek to speed up handling of failing banks to ensure they are not bailed out by taxpayers but "bailed in" using their own resources, EU documents seen by Reuters showed.
The EU's proposals come at a time of heightened sensitivity in the banking industry following UBS's merger with Credit Suisse, and the collapse of several U.S. banks, including Silicon Valley Bank.
Sewing added that the financial industry is more robust and resilient than it was 15 years ago and Europe has made great strides in banking regulation, but warned against tighter regulation.
"A further massive tightening of banking regulations will lead to further activities migrating to the so-called shadow banking sector, which has already grown considerably in the wake of the financial crisis," he said.
