Deutsche sweats accounting switch, model probe

CET1 ratio could fall 40bp following ECB-led internal model assessment

Deutsche Bank warned its core capital ratio would come under pressure in 2019 following a change in accounting rules and expected regulatory sanctions over the quality of its internal models.  

The German lender told investors that the shift to accounting standard IFRS 16, which adjusts how long-term commercial leases are valued, next January would shave 20 basis points off its Common Equity Tier 1 (CET1) capital ratio.

An additional hit of 20bp to 40bp was forecast as the price of supervisory

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here