Thursday, June 30, 2016

IMF: Deutsche Bank the largest systemic risk – Puls Biznesu

The German financial institution “seems to be a major ‘net payer’ (have the largest contribution) for systemic risk” among global systemically important banks or so. G-SIBs *, says the IMF. Another place in the infamous ranking fell to the British HSBC Holdings and Swiss Credit Suisse Group.

Global regulators are trying to avoid a repeat of the situation of the financial crisis in 2008. When taxpayers financed the bank bailouts by forcing lenders to more stringent capital requirements. They were somehow “encouraged” banks to become less players and less complex structure.

Concerns about the condition and financial strength of Deutsche Bank for a long time negatively reflected in the trading values ​​of the institution in Frankfurt. It is now the worst valued FOR IN bank market among global lenders.

The situation around the Deutsche Bank and assessment of investor through the prism of the share price shows how fleeting may be the “validity”, stressing the importance of risk management, intensive supervision of G-SIB and the strict monitoring of their exposure to cross-border, as well as the ability to rapid implementation of the new regulations – says the IMF.

it is worth noting that one of the US companies, Deutsche Bank, Deutsche Bank Trust Corp did not pass the latest stress test, the annual survey the condition of financial institutions operating in the US, which is developing the Fed.

(click on the graphic to enlarge)

* G-SIBs – financial institutions whose problems, due to the size, complexity and interconnectedness of the system, would cause serious disruption to the wider financial system and economic activity

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