Germany's largest bank, Deutsche Bank, has announced that it's taking over one of its major American rivals, Bankers Trust, to create the biggest bank in the world.

A statement by Deutsche Bank said the deal had been approved by the boards of both banks.

The new enterprise will have assets worth more than eight-hundred-billion dollars.

It's expected that up to three-thousand jobs will be lost through the takeover.

Analysts say the purchase will help Deutsche Bank fulfil its aim of establishing a sizeable presence in the United States.

But they say the turbulence on financial markets has also shown the considerable risks involved in expanding into investment banking.