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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».

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  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.

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