Germany’s largest bank is going through some major changes, including the establishment of a so-called “bad bank” to overhaul its trading operations.

Deutsche Bank is currently trying to shrink or cut out its US trading and equity businesses in order to hold onto tens of Billions of Euros in assets. This development comes alongside Deutsche Bank Chief Executive Christian Sewing’s efforts to shift Germany’s biggest lender away from investment banking.

The current plan at Deutsche Bank will see the bank go through significant cuts or closures at their rates trading and equity businesses outside of Europe. A final decision on the matter has yet to come, but what is certain is that managers at Deutsche Bank are moving their focus towards transaction banking and private wealth management. Sewing is expected to report on the coming changes with the release of the bank’s mid-year report late in July. The markets have reacted positively to this news, as shares in Deutsche Bank shot up 3% during early trading on Monday.

The cuts coming to Deutsche Bank will “need to be radical,” according to one senior figure at Germany’s biggest bank. Deutsche Bank has been going through a rough time in recent years as their investment bank has weighed on earnings. Deutsche Bank’s investment banking operations have caused losses for the last two quarters, and a rash of fines over misconduct scandals has weighed on the bank’s share value. These factors have combined forces to push Deutsche Bank’s share price to the lowest it’s been in 149 years. April brought another shock to the company, as a potential merger with Commerzbank fell through, leaving Deutsche Bank in a precarious position.