Germany Tells Banks to Build $25 Billion in Capital Buffers

  • Europe is tightening reins for banks after pandemic leeway
  • Watchdogs see risk in corporate loans, mortgages, valuations

The Deutsche Bank AG twin tower headquarters, right, stand beside the Frankfurter Sparkasse Tower, center, on the financial district skyline in Frankfurt, Germany.

Photographer: Alex Kraus/Bloomberg
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Germany is telling its banks to rebuild capital buffers that they were allowed to deplete at the onset of the pandemic, joining other European countries in tightening regulations again as lenders take more risk.