The balance sheets of the US arm of the German institution Deutsche Bank will be slashed as the company has revealed plans that will see it comply with new Federal Reserve rules aimed at foreign banks.
It is planning to reduce assets held in its US arm by around a quarter through the reassignment of operations to its European or Asian operations.
Stefan Krause, Deutsche Bank's chief financial officer, told the Financial Times that the company is confident of meeting the new capital requirements imposed on its US operation.
He explained that the balance sheet adjustment is not a pullback from the bank's US franchise, as the lender is focused on increasing its asset and wealth management business.
"The US continues to be an important market for us. We are very comfortable we will be able to meet the leverage requirements in the US," he said.
Deutsche Bank has also signed a definitive agreement to sell the Manila branch of its trust business to BDO Unibank Inc, the Philippines' top lender.
By Claire Archer