Deutsche Bank to Hold Higher Capital Buffer in 2023

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By Ed Frankl

Deutsche Bank AG said it will have to support its business with more capital in 2023 than last year, based on European Central Bank regulations.

The German lender said Friday that its pillar 2 capital requirements will increase by 20 basis points to 2.7% under the ECB’s supervisory review and evaluation process, known as SREP.

“The increase is driven by the ECB’s newly introduced separate assessment of risks arising from leveraged financing activities,” Deutsche Bank said.

The ECB’s requirements for Deutsche Bank’s common equity tier 1 capital ratio will be 10.55%, up from 10.43% at the end of September 2022, the bank-based lender added in Frankfurt.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

01-02-23 0257 ET

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