Deutsche Bank Set to Get Leveraged Loans Capital Relief from ECB

Deutsche Bank AG is likely to win a reduction in the capital surcharge for its leveraged finance business from the European Central Bank, potentially mitigating a source of friction between the German lender and its top regulator.

The ECB is preparing banks’ individual capital requirements for next year and progress Deutsche Bank has made in curbing risks related to leveraged lending means officials will probably lower a so-called capital add-on for the business, according to people familiar with the matter. The lender however still isn’t in full compliance and the ECB is likely to keep much of the surcharge, ...