Meet the riskiest bank in the world

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Deutsche Bank is the riskiest bank in the world, according to the US Federal Deposit Insurance Corporation.

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The bank has a leverage ratio of 2.68% according to the regulator's calculations.

The leverage ratio is a measure of a bank's financial sustainability, and shows how much equity capital a lender has against assets such as loans.

The US calculation includes the amount of derivatives banks have on their books. A higher percentage suggests a bank is in a better position to weather losses and defaults.

On average, systemically important banks had a leverage ratio of 5.6% - or more than double that of Deutsche Bank. Wells Fargo is the strongest, with a ratio of 8.01%.

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Banks are getting generally riskier, according to FDIC Vice Chairman Thomas M. Hoenig.

"Although equity capital increased for U.S. G-SIBs in the first half of the year, assets increased more than proportionately, including a significant expansion of their derivatives book," Hoenig said in a statement on the FDIC's website.

"The net effect was an increase in their overall leverage position. Thus, as markets have recovered and as central banks around the world continue quantitative easing programs, the incentives for increasing financial leverage have intensified."

Deutsche Bank has a lower capital ratio than the US banks before the 2008 financial crisis, according to Hoenig.

"In 2008, the 10 largest US banks held on average 3.1% tangible equity capital-to-assets. When the financial crisis hit, these institutions experienced significant losses and required extraordinary government support," he said.

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Here is the chart from the regulator:

FDIC1

FDIC

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