European Union stress tests pushed the leverage ratios of Deutsche Bank and Barclays below the 3% regulatory minimum.
Deutsche Bank’s leverage ratio was projected to fall to 2.61% at the end of the three-year adverse stress period, from an end-2017 level of 3.8%. Its peak-to-trough capital burn was estimated at €16.5 billion.
Barclays’ ratio bottomed out at 2.88% in the second year of the stress period and settled at an end-state of 2.96%, from a starting point of 4.48%. The peak-to-trough