On Friday, in a move that is likely to reassure regulators, Deutsche Bank CEO Christian Sewing said, Deutsche Bank is willing to give up his role of overseeing the investment bank in the foreseeable future.
Deutsche Bank, Germany’s biggest bank, is one of the few major banks in the world to assign day-to-day oversight of investment banking to its chief executive; at most banks, board members oversee the division.
According to a source who spoke on the condition of anonymity, Sewing never intended to permanently keep this role; further management duties have also been added in the 2019 overhaul of the bank.
Neither Deutsche Bank, its regulators, BaFin, or the European Central Bank declined comment.
According to media reports, Sewing has been under pressure from regulators since January to relinquish his day-to-day oversight of the investment bank. Regulators are worried that Sewing has too much on his plate, potentially leaving the investment bank open to operational hazards.
A report from Handelsblatt states, “there is movement on the topic of the Sewing’s dual role.”
The investment bank is the German lender’s main profit driver, but also represents a concentration of risk for a bank that is deemed “systemically important” in terms of the functioning of the global financial system.