Introduction:
Deutsche Group (worldwide network of banks operating under the Deutsche brand) and Commonwealth Bank of Australia, with primary operations within Australia, are both well-known bank brands in their own respect. Deutsche bank operating on a global scale maintains its reports in pound sterling. It reports an asset base of about 1348 billion pounds. Commonwealth bank of Australia operates on a smaller scale with a reported asset base of 975 billion dollars.
Here we take a look at the risk measures they both comply with through different standards of measurement. We compare the performance and adequacy ratios of Deutsche bank and Commonwealth bank of Australia through some key ratios though Deutsche Group operates on a larger scale. The following are the key findings.

Core Tier 1 Capital versus Risk Weighted Assets
As per its latest annual report filed in 2018, Deutsche groups holds about a 350 billion pounds in Risk weighted assets at the end of 2018 as against a Core tier 1 (common equity) capital of 47486 million pounds. This gives the bank 13.6% of core tier 1 capital versus its Risk Weighted Assets
Deutsche group:
Tier 1 Capital(Common Equity): 47486 (fully loaded)
Risk weighter Assets : 350 Bn Pounds 2018
Core Tier 1 capital Versus Risk Weighted Assets = 13.6%
In its latest report filed for the year 2018, Commonwealth Bank of Australia holds about 46537 million dollars of Core tier 1 (common equity) in capital as against a Risk Weighted assets of 458612 million dollars. This gives the bank 10.1% of core tier 1 capital vs RWA ratio
Core Tier 1 (common Equity) capital : 46537
Risk weighted Assets: 458612
Core Tier 1 capital Versus Risk Weighted Assets =10.1%
Tier 1 capital versus Risk weighted Assets.

For 2018, Deutsche group holds about 55091 million pounds as a Tier 1 capital, at the end of the fiscal. With its stated Risk Weighted Assets standing at 350 billion, its Tier 1 capital vs Risk Weighted Assets stands at

Exercise 1 (10 points) Consider a static game with two players, An...