Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 34

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 34
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 regulatory reforms that have been adopted or proposed – for example, extensive new regulations governing derivatives activities, compensation, bank levies, deposit protection and data protection – may materially increase Deutsche Bank’s operating costs and negatively impact its business model. Beyond capital requirements and the other requirements discussed above, Deutsche Bank is affected, or expects to be affected, by various additional regulatory reforms, including, among other things, regulations governing its derivatives activities, compensation, bank levies, deposit protection and data protection. Under the EU Regulation on over-the-counter (OTC) derivatives, central counterparties and trade repositories, referred to as European Market Infrastructure Regulation (EMIR) banks and other covered institutions must abide by certain requirements, including clearing obligations for certain classes of OTC derivatives and various reporting and disclosure obligations. Following a targeted review of EMIR which concluded in January 2023, certain changes to such EMIR requirements were adopted in November 2024 and the revised EMIR (“EMIR 3.0”) published in the Official Journal in December 2024, including the introduction of requirements for counterparties subject to clearing obligations to maintain active accounts at EU central counterparties and clear a representative portion of certain systemic derivative contracts within the EU.The implementation of EMIR 3.0 requirements may negatively impact Deutsche Bank’s profit margins. Deutsche Bank is subject to restrictions on compensation including caps on bonuses that may be awarded to “material risk takers” and other employees as defined therein and in the German Banking Act and other applicable rules and regulations such as the Remuneration Regulation for Institutions ( Institutsvergütungsverordnung). Such restrictions on compensation, whether by law or pursuant to any guidelines issued by the EBA to further implement them, could put the bank at a disadvantage to its competitors in attracting and retaining talented employees, especially compared to those outside the European Union that are not subject to these caps and other constraints. Bank levies are provided for in the EU member states participating in the SRM, including, among others, Germany, and also other countries, such as the United Kingdom. Deutsche Bank paid € 172 million for bank levies in 2024, € 528 million for bank levies in 2023 and € 762 million in 2022, reflecting ex-ante contributions to the Single Resolution Funds (“SRF”). The target level of the SRF of 1% of insured deposits of all banks in member states participating in the SRM was reached at the end of 2023 and no contributions to the SRF were