Bloomberg News

Deutsche Bank Changed Risk-Weightings With Approval

February 02, 2012

(Corrects wording of quotation in second paragraph.)

Feb. 2 (Bloomberg) -- Deutsche Bank AG modified the risk- weightings of assets related to credit risk with the approval of Germany’s financial regulator, Chief Financial Officer Stefan Krause said.

“The models were put in place, reviewed and approved by our regulator one by one after a long test and an audit,” he said on a conference call with analysts today. “About half is real risk reduction and the other half is model and process- related improvements.”

Deutsche Bank’s risk-weighted assets rose by a total 44 billion euros ($57.8 billion) in the fourth quarter as the company applied Basel 2.5 rules. The company reduced credit- related risk-weighted assets by 22.6 billion euros in the period, according to slides posted on the bank’s website for Krause’s presentation.

To contact the reporter on this story: Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.net

To contact the editor responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net


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