Deutsche Bank CRO: derivatives becoming loss leader
Banks may have to rethink their interest rate derivatives businesses in the face of tough capital requirements, warns Deutsche Bank's Stuart Lewis
New prudential rules have squeezed the profitability of interest rate derivatives to such an extent that even traditional pillars of the business may no longer be viable on a standalone basis, according to Stuart Lewis, group chief risk officer at Deutsche Bank.
Interest rate derivatives in particular have become "a very capital-intensive product" under the fourth Capital Requirements Directive
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