Deutsche Bank Falls Short Under Goldman’s Take on Stress Tests

Deutsche Bank AG showed a 2 billion-euro ($2.22 billion) capital shortfall under Goldman Sachs Group Inc.’s analysis of stress tests conducted by European regulators last month.

The gap includes the higher reserves Deutsche Bank must hold as a global systemically important bank, Goldman Sachs analysts wrote in a report on Monday, citing their own calculations. While smaller competitor Commerzbank AG cleared all the hurdles the analysts applied, the results highlight that the low amount of capital it can generate by setting aside profit is a key challenge for the lender.