Deutsche Bank AG confirmed it faces a higher capital requirement as its main regulator pushes lenders to dial back the risks they face in the lucrative business of leveraged finance.

The German lender must hold common equity Tier 1 capital equivalent to 10.55 percent of its risk-weighted assets this year, up from 10.43 percent at the end of September, it said in a statement. The firm already exceeds the requirement by a wide margin, with a ratio of 13.33 percent at the end of the third quarter.

“The increase is driven by the ECB’s newly introduced separate assessment of risks stemming from leveraged finance activities,” Deutsche Bank said.

Bloomberg reported in November that the German bank and BNP Paribas SA were among lenders facing rising capital charges related to leveraged loans. The ECB has said some lenders aren’t properly grasping the risks they face in that business, which involves financing highly-indebted companies, such as those acquired by private equity firms.

Deutsche Bank CEO Christian Sewing has pushed back, saying his firm doesn’t need warnings from its regulator to contain the risk it faces in leveraged loans.