Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 82

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 82
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 things, a gradually introduced output floor establishing minimum risk-weighted assets that will ultimately be set at 72.5 % of the risk-weighted assets calculated under the standardized approach, changes to standardized and internal ratings-based approaches for determining credit risk, changes to the credit valuation adjustment, a revision of the approaches for operational risks and reforms to the market risk framework as set out in the FRTB, adjustments to the Pillar 2 requirements (P2R) and the Systematic Risk Buffer (SyRB) and a “fit-and-proper” set of rules for the senior staff managing banks. Other proposed measures are aimed at addressing sustainability risks by requiring banks to identify, disclose and manage environmental, social and governance risks as part of their risk management framework and include regular climate stress testing by the banks’ supervisors. The implementation of the changes to CRR and CRD has the potential to increase Deutsche Bank’s risk-weighted assets and will likely affect its business by raising its regulatory capital and liquidity requirements and by leading to increased costs. In connection with the Final Basel III package, the European Commission adopted a Delegated Regulation postponing the application of certain elements of the CRR3 related to the market risk framework (FRTB) by one year to January 2026. This was in order to ensure a level playing field for these rules, given that other major jurisdictions would apply them later or were not clear about their implementation timeline. On the back of the CRR3 and CRD 6 finalization and as empowered therein, the European Banking Authority (EBA) started working on technical elements through regulatory standards and guidance (regulatory products), by issuing consultations and, in some instances, final regulatory products. These regulatory products have the potential to increase Deutsche Bank’s risk-weighted assets and will likely affect its business by raising its regulatory capital and liquidity requirements, increasing costs or impacting other parts of the business. In parallel, the UK Prudential Regulation Authority (PRA) finalized and published its package implementing the Final Basel III reforms, known as Basel 3.1. On January 17, 2025, the PRA announced that it would delay the formal implementation date until January 2027. In July 2023, the U.S. federal banking agencies issued a Notice of Proposed Rulemaking (NPR) for the implementation of the Final Basel III reforms in the U.S. The NPR would implement the most wide-ranging and significant changes to the U.S. capital rules since 2013, requiring Category I-