In liquidity buffer shake-up, Deutsche shuns cash
Central bank balances fall as share of liquidity buffer to 64% in Q2
Deutsche Bank has steadily cut the share of its liquidity portfolio held in cash, as it seeks to deploy excess liquidity into higher-yielding investments.
As of the second quarter of this year, Deutsche had 64% of its €246 billion ($270 billion) liquidity reserve as cash in central banks, down from 70.8% at end-2018 and 79.3% at end-2017. In its Q2 interim report, the bank said it was taking “active measure to reduce and redeploy excess liquidity”.
Still, the firm has a larger share of its
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