Deutsche sweats accounting switch, model probe
CET1 ratio could fall 40bp following ECB-led internal model assessment
Deutsche Bank warned its core capital ratio would come under pressure in 2019 following a change in accounting rules and expected regulatory sanctions over the quality of its internal models.
The German lender told investors that the shift to accounting standard IFRS 16, which adjusts how long-term commercial leases are valued, next January would shave 20 basis points off its Common Equity Tier
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