Commerzbank sees capital ratio fall after adjustments

Commerzbank said a key measure of financial strength fell in the second quarter as it made accounting adjustments to reflect operational risks to banks across the industry.

Bloomberg News reports that the common equity Tier 1 ratio declined to 11.5% at the end of June, based on preliminary figures, from 12% three months earlier, the company said in a statement from Frankfurt late Monday.

Net income in the second quarter fell about 32% from a year earlier, the firm said without specifying how divisions performed.

Global regulators are ordering banks to hold more capital to absorb costs from so-called operational risks such as legal expenses for misconduct or losses from rogue traders. The requirements, which reflect developments in the wider industry, are among stricter rules designed to prevent a repeat of the taxpayer-funded bailouts of banks during the 2008 financial crisis.

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Commerzbank Says Capital Ratio Falls on Operational Risk

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