Jain Says Leverage Ratio Debate Is Over, Banks to Comply

Deutsche Bank AG (DBK) co-Chief Executive Officer Anshu Jain said lenders will have to comply with a leverage ratio as the debate over stricter capital standards has concluded.

“We’ve had the debate about the leverage ratio,” Jain said of the banking industry at a conference in Frankfurt today. “At this point, frankly, that decision is done and we’re moving on. We have to comply.”

Deutsche Bank announced a plan at the end of July to shrink its balance sheet by 250 billion euros ($329.3 billion), or 16 percent, by 2015 to meet stricter standards for the leverage ratio, which shows the relation of equity to total assets.

Jain has previously criticized the gauge as potentially restricting lending and increasing the readiness of some banks to take risk.

To contact the reporter on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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