Wind-down of Deutsche’s ‘bad bank’ slows
German lender expects capital release unit to be €51 billion in size in 2022
Deutsche Bank said the size of its capital release unit (CRU), or ‘bad bank’, would be “higher than anticipated” going into 2022, and drag on its leverage ratio.
In a special call with investors, the German giant said it expected the leverage exposure of the CRU to be around €51 billion ($61.6 billion) as of end-2022. When the ‘bad bank’ was originally created in Q3 2019, Deutsche planned for it to be “mostly unwound” by then, and account for just €9 billion of leverage exposure.
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