Deutsche Bank may face higher capital bar for leveraged loans – Bloomberg News

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22nd of June. Reuters. – The European Central Bank informed Deutsche Bank AG. (DBKGn.DE) As reported by Bloomberg News, citing people familiar with the matter, he will probably need to have more capital to account for the risk when lending to heavily indebted clients.

The report says the German lender could avoid a higher capital requirement if it can effectively reduce its exposure before the ECB sets targets for 2022 by the end of the year. (https://bloom.bg/2SXWknT)

“We have extensive experience in business (leveraged loans) and take a prudent approach to managing risk in accordance with regulatory requirements,” said Deutsche Bank.

“We don’t comment on the dialogue with our regulators in principle.”

The ECB declined to respond to Reuters’ request for comment.

The ECB’s move could complicate matters for CEO Christian Sewing, who embarked on a radical restructuring two years ago to bring the bank back to profitability.

The bank’s first-quarter net income was the highest in seven years thanks to its investment banking activities, which outpaced major US competitors.

Sokhini Podder reporting in Bangalore; Edited by Krishna Chandra Eluri

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