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ECB Hits BNP, Deutsche Bank With Leveraged-Loan Capital Charges

  • ECB sees banks as ignoring warnings over leveraged loan risk
  • Deutsche Bank executives have said they don’t agree with ECB
Updated on

The European Central Bank is imposing higher capital requirements on lenders including BNP Paribas SA and Deutsche Bank AG, arguing that they have ignored warnings to cut risk in the lucrative business of leveraged finance, according to people familiar with the matter. 

The French and German investment banks are among a handful of institutions who are active in the business and are facing tougher demands from the ECB, according to the people, who asked to remain anonymous as the matter is private.