Skip to main content

Olaf Scholz has rejec­ted com­par­is­ons between Deutsche Bank and Credit Suisse.

 

Deutsche bank
Olaf Scholz has rejec­ted com­par­is­ons between Deutsche Bank and Credit Suisse as a slump in the Ger­man lender’s shares sparked another day of tur­moil for the bank­ing sec­tor.

Speak­ing after Deutsche shares fell as much as 14 per cent yes­ter­day, the Ger­man chan­cel­lor sought to shore up con­fid­ence in the coun­try’s biggest bank, with investors still nervous after the forced takeover of Credit Suisse.

«Deutsche Bank has fun­da­ment­ally mod­ern­ised and reor­gan­ised its busi­ness and is a very prof­it­able bank,» Scholz said at a sum­mit in Brus­sels after being asked if the lender was the new Credit Suisse. «There is no reason to be con­cerned about it».

He insisted that the cap­ital con­trols of European banks were «robust, thanks to work over the past few years and also to the efforts of the banks them­selves».

His com­ments came as part of a con­cer­ted bid by European lead­ers to calm mar­ket nerves as shares slid in the region’s biggest banks.

Ana­lysts said there was no fun­da­mental reason for the hefty down­turn in

Deutsche’s shares. «Investors are wor­ry­ing about the health of the bank. However, we are rel­at­ively relaxed because of Deutsche’s robust cap­ital and liquid­ity pos­i­tions,» Stu­art Gra­ham of Autonom­ous Research said. «To be crys­tal clear — Deutsche is NOT the next Credit Suisse».

www.sba.tax

Labels:

Comments

  1. Jean25 March 2023 at 11:52

    Fast forward 18 months later and it turns out Deutsche Bank is the next Credit Suisse. Would that be such a shock? I don't think so. Considering everything that has happened, I wouldn't find it surprising. I hope it doesn't happen but I wouldn't be 100% sure it won't. From the outside, the German bank looks good, with enough liquidity to withstand these times, but we don't know everything.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

EU debt reduction

  Brussels wants to give EU capitals extra time to curb their debts and create space for public investment as part of an overhaul of the EU’s deficit rules .  The European Commission would table a proposal at the end of the month to reform the Stability and Growth Pact ,  under which it would work out multi-year ,  country-specific plans with capitals for getting their debt burdens under control ,  EU officials said .  The proposals come as member states face mounting fiscal burdens as they spend hundreds of billions of euros sheltering businesses and households from the energy crisis .  Under the new blueprint ,  the commission would propose a four- or five-year plan to an EU member state to get its public debt burden on a credible ,  downward trajectory ,  officials said . The national fiscal plan would need to pass a debt sustainability analysis and be approved by the commission and EU council .  The new regime would ditch an EU ...
Post a Comment
Read more