Deutsche Bank says does not plan to raise capital

FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE: Quote, Profile, Research) does not plan to raise fresh equity, Germany's biggest bank said on Tuesday, dismissing market talk that it may increase its capital to strengthen its balance sheet at a time of market turmoil.

In a brief statement Deutsche Bank reiterated that it expected a Tier 1 capital ratio of around 10 percent by the end of the third quarter "and consequently that no equity-raising measures are planned."

The capital ratio refers to core capital as a percentage of risk-weighted assets and is a key indicator of a bank's financial strength.

Deutsche Bank had come under sharp pressure amid market concern about a possible capital increase, even though a financial source had earlier told Reuters such talk was "complete nonsense."

Shares in Germany's biggest commercial bank fell more than 15 percent to a low of 40.50 euros before recovering somewhat to 44.83 euros by 1034 GMT, down 6.3 percent amid broad weakness acorss the German banking sector.

The DJ Stoxx European bank index fell 1.6 percent.

(Reporting by Philipp Halstrick and Michael Shields; Editing by Greg Mahlich)