DEUTSCHE BANK PLANS TO REDUCE ITS 10 BILLION EUROS OF EXPOSURE TO MINING AND STEEL

Deutsche Bank , Germany’s biggest bank, said it plans to shrink its €10 billion of exposure to metals, mining and steel as it seeks to cut risky holdings in those industries.

Just 35 per cent of the portfolio is classified as investment grade, Deutsche Bank said in a statement from Frankfurt on Friday.

Gross loans account for €5 billion of the total, while irrevocable lending commitments make up €3 billion, it said.

“This portfolio is of lower quality compared to our overall corporate credit portfolio,” Deutsche Bank said. “Our strategy is to reduce this credit portfolio due to elevated risks of this industry.”

Banks around the globe are grappling with the fallout of declining commodities prices as cooling emerging-market growth undermines demand from steel to energy.