Regulatory headwinds to amp Deutsche’s RWAs in 2021
Targeted review of internal models to add €4bn of RWAs in 2021
Deutsche Bank expects to incur a €20 billion ($23.9 billion) add-on to its risk-weighted assets (RWAs) in 2021 from financial watchdogs, in part to address shortcomings found with the internal models used to set its capital requirements.
The German giant kept a lid on RWAs, which are used to set risk-based capital charges, throughout 2020 in spite of the coronavirus crisis. At end-2020, the bank’s total came to €329 billion, up just €5 billion on the year prior.
But in its full-year earnings
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