Deutsche Bank Ranks Last on Capital Gauge Where Citigroup Excels
- German company's leverage ratio still exceeds Basel minimum
- U.S. banks outrank Europe's as regulators demand more capital
This article is for subscribers only.
John Cryan, Deutsche Bank AG’s co-chief executive officer, called the company’s balance sheet “rock solid” this week after the firm’s shares and bonds tumbled, pointing to a “strong capital and risk position.” By one gauge, Cryan still lags behind every one of his main competitors.
The leverage ratio, a standard introduced globally by the Basel Committee on Banking Supervision after the 2008 financial crisis, measures Tier 1 capital as a percentage of total assets. Frankfurt-based Deutsche Bank, at 3.5 percent, is half a percentage point behind its closest competitor.