Deutsche Bank’s Low Capital Makes It No. 1 for Risk in Study

Deutsche Bank AG’s status as the riskiest among its peers is worsening, based on a U.S. regulator’s measure of leverage, adding to the lender’s woes as it braces for a settlement over mortgage securities.

Leverage ratio—a lender’s capital measured against its assets—at Deutsche Bank lags behind the rest of the world’s major banks, according to data released Sept. 20 by Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig. A lower ratio means the German bank has less of a cushion if a crisis arises. The figure was 2.68 percent as of June 30, down from a year earlier and about half ...