Deutsche Bank accused of understating its leverage and overstating its financial strength

A dispute that began at Deutsche Bank as far back as 2013 is still rumbling on.

And now, according to reporting by the Financial Times, the European Central Bank is investigating allegations that Germany’s largest lender, Deutsche Bank, repeatedly misrepresented the strength of its balance sheet and distorted its financial soundness to regulators.

Deutsche Bank rebutted the allegations in a statement, maintaining it applies “netting in accordance with the relevant accounting standards and generally aligned with common industry practice.”

Deutsche Bank can be considered as having a generally robust balance sheet with a Common Equity Tier 1 ratio, the standard metric for capital strength, of 14.5%, way in excess of the minimum requirement.

At the heart of this controversy is Deutsche Bank’s role in an accounting scandal involving the Italian Banca Monte dei Paschi

MarketWatch 25 November 2025

https://www.marketwatch.com/story/the-case-that-wont-go-away-ecb-reportedly-investigates-allegations-of-financial-irregularities-at-deutsche-bank-e2a03a79


Tier 1 Capital: Definition, Components, Ratio, and How It's Used

https://www.investopedia.com/terms/t/tier1capital.asp


Why is Deutsche Bank now the biggest worry in the financial world?

https://englundmacro.blogspot.com/2016/09/deutsche-bank-at-present-trades-at-02.html


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