European Regulators Fear Deutsche Bank US Stress Test Failure

European Regulators Fear Deutsche Bank US Stress Test Failure
A man walks past Deutsche Bank offices in London, Britain, December 5, 2013. Reuters/Luke MacGregor/File Photo
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FRANKFURT—Deutsche Bank is in danger of failing U.S. stress tests, a European bank supervisor told Reuters, adding to pressure on Germany’s biggest lender to make changes to its investment bank after failed merger talks with Commerzbank.

European Central Bank regulators are concerned that Deutsche Bank’s standing has weakened since it flunked U.S. stress tests in 2015, 2016 and 2018 and a repeat would cause a bigger dent in confidence among customers and business partners.