05:06 AM EST, 11/25/2025 (MT Newswires) -- Deutsche Bank ( DB ) is under European Central Bank review over allegations it understated risks and overstated financial strength, the Financial Times reported Tuesday, citing people familiar with the matter.

The ECB has reportedly questioned Deutsche Bank's ( DB ) netting practices while assessing capital rules and collateral treatment.

The review covers a recent letter from ex-employee Dario Schiraldi alleging that aggressive netting and off-balance-sheet techniques inflated the company's capital and leverage ratios, the publication reported.

Schiraldi also claims leverage exposures were understated by more than 200 billion euros ($230.68 billion) in 2024 financial statements, the FT reported.

The ECB has not decided whether to open a formal investigation into Deutsche Bank ( DB ), the publication added.

Deutsche Bank ( DB ) didn't immediately respond, while the ECB declined MT Newswires' request for comment.

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