Mubasher: Deutsche Bank plans to overhaul its trading business by setting up a so-called bad bank for housing tens of billions of euros in non-core assets, Reuters reported citing source familiar with the matter.

The bad bank would hold or sell assets with the value of more than EUR 50 billion ($56.07 billion), and comprise mainly long-dated derivatives, the news agency said.

The move, which was first reported by the Financial Times (FT), will also include scaling back or shutting equity and rates trading businesses outside Europe.

This came within the framework of a major reorganisation of the investment bank, an essential source of revenue for Deutsche Bank, as it pushed to generate sustainable profit since the 2008 financial crisis.

Last month, the German lender’s CEO Christian Sewing pledged “tough cutbacks” at investment operations.

Deutsche was “working on measures to accelerate its transformation so as to improve its sustainable profitability,” an emailed statement to the FT was quoted by Reuters.

The latest move indicates another shift by Germany’s biggest bank towards more stable forms of revenue, including transaction banking, rather than investment banking.