Understanding Deutsche Bank Challenges With Basel III Compliance

Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) raised a lot of concerns towards the end of 2011 when it reported that it had a pro-forma Basel III core Tier 1 capital ratio of 6.6% – one of the lowest among all the banking groups included in the list of global systemically important banks (G-SIBs) by the Financial Stability Board (FSB) then. But the largest German bank has come a long way since then to notch up a capital ratio figure of 8.8% by the end of Q1 2013 – a milestone it achieved by cutting down on its risk-weighed assets (RWA) by selling its non-core business units as well as by playing around with the asset classes...