European Banks Face Capital Gap as Attention Turns to Leverage

European Banks Face Capital Gap as Attention Turns to Leverage

Krisztian Bocsi/Bloomberg

Deutsche Bank AG, Continental Europe’s biggest bank, will cut assets by selling some loans and lowering liquidity reserves, Chief Financial Officer Stefan Krause said earlier this month, a plan that may lead it to shrink its balance sheet by as much as 20 percent, the Financial Times reported July 21.