Deutsche Bank Says Basel Capital Rules to Crimp Defense Finance

Deutsche Bank AG’s top risk manager has warned Europe against crippling lenders with so many rules that its legacy will be “unfortunately, they didn’t have tanks, but the banking regulation was really fair.”

Marcus Chromik, Deutsche Bank’s new chief risk officer, told a Frankfurt banking conference that the European implementation of new global capital rules would frustrate banks’ support for longer-term projects critical to defense.

The new Basel 3.1 regime does not come fully into force until 2033, but Chromik said it was already affecting banks’ lending decisions for smaller companies, which are critical suppliers to the defense ...