Now less of a systemic risk, Deutsche wins capital relief
Prospective leverage ratio should fall to 3.75% after risk-cutting efforts
Having cut assets and intra-system ties with other firms in 2018, Deutsche Bank was downgraded as a systemic threat to the financial system today (November 22). This should lower its future leverage ratio requirement from 2022.
The bank’s G-Sib score – the metric used by the Basel Committee to assess potential too-big-to-fail banks – fell to 295 basis points from 363bp a year ago, according to Risk Quantum analysis of its systemic risk indicators.
This placed it below the 330bp threshold for a
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