(Corrects figure in third paragraph to trillions instead of
FRANKFURT Oct 9 Deutsche Bank is
continuing to cut back the size of its derivatives book, which
is not as risky as investors may believe, Chief Risk Officer
Stuart Lewis told German weekly paper Welt am Sonntag.
"The risks in our derivatives book are massively
overestimated," Lewis told the paper. He said 46 trillion euros
in derivatives exposure at Deutsche appeared large but reflected
only the notional value of the contracts, while the bank's net
exposure to derivatives was far lower, at around 41 billion
"The 46 trillion euros figure sounds gigantic, but it is
completely misleading. The real risk is far lower," Lewis said,
adding that the level of risk on Deutsche Bank's books was in
line with that seen at other investment banking peers.
"We are trying to make our business less complex and are
paring back our derivatives book. Parts of it were transferred
into a non-core unit some years ago."
New banking regulations imposed in the wake of the 2009
financial crisis discourage large bets on risky assets, and have
forced Deutsche Bank to drastically cut back the scale of its
Derivatives are financial contracts that draw their value
from the performance of an underlying asset, index or interest
rate. They can be used to hedge risks.
(Reporting by Edward Taylor; editing by Andrew Roche)