Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 25

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 25
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 (implementing the fundamental review of the trading book – FRTB), which has been delayed by the European Commission, via a Delegated Act, until January 2026. The output floor, which limits the internal-model RWA to ultimately 72.5% of the standardized approach RWA, will apply fully in January 2030. Final Basel III will increase the bank’s RWA and associated capital requirements. The reform is also being implemented, with different timelines, in all major jurisdictions. At the start of 2024, the European Banking Authority (EBA) consulted on amendments to its regulatory technical standards (RTS) on prudent valuation. This standard sets out the requirements that institutions operating in the EU should apply for the valuation of their fair-valued assets and liabilities for prudential purposes. The EBA is working through the comments received, and depending on their final view, this may lead to an increase in Deutsche Bank’s CET 1 requirements. The EBA also consulted on change to their RTS on off-balance sheet items. This approach is also looking into the treatment of chargeback payments. Similar to the prudent valuation RTS, the EBA is working through the comments, and the bank expects a final RTS to be published in third quarter 2025. This will provide further steer on the prudential treatment of chargeback risk.Furthermore, Deutsche Bank’s prudential regulators, including the European Central Bank (the “ECB”) under the EU’s Single Supervisory Mechanism (the “SSM”), conduct stress tests and regular reviews of asset quality and risk management processes in accordance with the supervisory review and evaluation process (the “SREP”). Prudential regulators have discretion to impose capital surcharges on financial institutions for risks which they deem to not be sufficiently covered by the general capital rules (Pillar 1) or impose other measures, such as restrictions on or changes to the business. In this context, the ECB has imposed, individual capital requirements on Deutsche Bank resulting from the SREP (referred to as “Pillar 2 requirements”) which it must meet with at least 75% of Tier 1 capital and at least 56.25% of CET 1 capital. Pillar 2 requirements must be fulfilled in addition to the statutory minimum capital and buffer requirements and any non-compliance may have immediate legal consequences such as restrictions on dividend payments.Following the 2024 SREP, Deutsche Bank has been informed by the ECB of its decision regarding pr