Bloomberg View: Why Big Banks Need More Capital
Regulators should adopt a better system for measuring financial health
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Some of the world’s largest banks are announcing spring makeovers. Earnings have improved, expenses are lower, and capital ratios are higher. Deutsche Bank said its first-quarter earnings rose 19 percent and that it had sold almost €3 billion ($4 billion) of new stock.
Deutsche Bank had been one of the most undercapitalized of the large global banks. It now says it’s ahead of schedule—and its peer group—in meeting new capital rules that international regulators agreed would take full effect in 2019.