Deutsche Bank USA projected a 4.8 percentage point decline in its Common Equity Tier 1 ratio, significantly less than the 8.2 percentage point drop projected by the Federal Reserve in the 2026 Dodd-Frank stress tests.
The discrepancy in projected capital declines between banks and the Federal Reserve in stress tests could indicate differing assumptions about economic conditions or bank-specific resilience, potentially influencing regulatory oversight and market confidence.
Nine US banks projected smaller declines in their Common Equity Tier 1 (CET1) ratios than the Federal Reserve in the 2026 Dodd-Frank stress tests (DFAST), according to Risk Quantum analysis. Deutsche Bank USA recorded the largest gap between its own projection and the Fed's. The bank projected its CET1 ratio would fall 4.8 percentage points from 22.6% to a minimum of 17.8% under the severely adverse scenario. In contrast, the Fed projected an 8.2 percentage point decline for Deutsche Bank USA.
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