ECB Raises Deutsche Bank Capital Bar in Leveraged Loan Crackdown
The headquarters of Deutsche Bank AG in Frankfurt, Germany.
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Deutsche Bank AG confirmed it faces a higher capital requirement as its main regulator pushes lenders to dial back the risks they face in the lucrative business of leveraged finance.
The German lender must hold common equity Tier 1 capital equivalent to 10.55% of its risk-weighted assets this year, up from 10.43% at the end of September, it said in a statement on Friday after market close. The firm already exceeds the requirement by a wide margin, with a ratio of 13.33% at the end of the third quarter.