European Banks to Shrink as U.S. Peers Set Pace: Euro Credit

European banks, including Deutsche Bank AG and Standard Chartered Plc, have less equity relative to assets than their U.S. peers, and will have to shrink or boost capital as regulators demand reduced leverage.

Standard Chartered holds Tier 1 capital equivalent to 7.04 percent of its adjusted assets, more than its European peers and 2 percentage points shy of Wells Fargo & Co., the strongest U.S. bank, according to data compiled by Charlottesville, Virginia-based SNL Financial LC. Deutsche Bank AG’s ratio is 3.76 percent, based on average assets for 2011, the last full year for which figures are available for companies surveyed by SNL.