In a bid to rival American investment banks, Deutsche Bank is asking investors for €8 billion, reports The Economist.

The money will increase the bank’s capital reserve to meet regulator’s standards, and it will help the bank strengthen its investment division. Some of the money could also go to pay future fines related to its role in LIBOR interest-rate fixing. Cash will also go fund restructuring, and changes to its accounting methods will eat up a portion of its new funds.

Read: Regulators don’t understand diversification

Many European banks, including Credit Suisse, UBS and Barclays, have shrunk their investment banking divisions recently, The Economist says.

Much of Deutsche Bank’s existing profit comes from investment banking. By expanding further, it’s betting that a current slump in this sector is due to cyclical factors and low interest rates, instead of a permanent regulatory chill.

Read more here.

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