Tighter Euro rules may force Deutsche Bank to set aside billions

Deutsche Bank - External

Deutsche Bank may need to set aside billions in additional capital under a proposal from European regulators that could affect the bank's efforts to strengthen its balance sheet and put pressure on dividends.

Reuters reports that analysts estimated the bank by market value might need as much as $3.03bn in extra capital to meet the tough new rule from the European Banking Authority, the regulator for banks in the European Union.

The proposal, made last week, would impose detailed standards on how banks value certain assets on their books and requires them to set aside additional capital to absorb unexpected losses.

Banks will, for example, need to use conservative valuations, seek independent price verification and consider additional costs when marking the value of their assets to market‎.

To access the complete Reuters article hit the link below:

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