Deutsche Bank plans to trim its more than 1 trillion euro balance sheet by up to 20 percent in order to comply with stricter rules for financial soundness, Financial Times reported on Monday.

The last DB retail banking subsidiary in China closed in mid-July, but company sources said shrinking DB's retail business in China started several years ago, and has little to do with its plan to shrink the balance sheet, reported International Finance News.

Analysts said DB is not alone among foreign banks in cutting its retail business from China. For some foreign banks, the lack of sales channels can impair their performance and profit gains.

Axing the retail business may help them to focus on their core businesses, such as investment banking, analysts said.

Foreign banks' closing of their retail banking subsidiaries does not necessarily mean they have completely withdrawn from retail banking as they can operate through their shareholdings in Chinese banks.