Germany’s Deutsche Bank is among roughly a dozen large European lenders that face higher capital requirements when new banking rules come into force in the coming years, several sources familiar with the matter told Reuters.
The assessment has been made in the Basel committee of supervisors, which is in the process of negotiating stricter bank capital rules — due to be finalised in January and come into force in 2019 — to avoid a repeat financial crisis.
Three people familiar with the matter have told Reuters that the new regime will be stricter with big banks, demanding new standards in how they assess risks of, say, property loans — effectively raising the capital hurdle.
International supervisors believe the tougher regime will affect Deutsche Bank and others with complex balance sheets more harshly than others, the sources added.
“For a small number of big banks there could be a significant increase,” one of those people said, on condition of anonymity.
Deutsche Bank and the Basel Committee on Banking Supervision declined to comment.
source”cnbc”