Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

IMF says Deutsche Bank's global links make it biggest potential risk

Published 30/06/2016, 14:15
© Reuters. The headquarters of Germany's Deutsche Bank are photographed early evening in Frankfurt
HSBA
-
CSGN
-
DBKGn
-

FRANKFURT (Reuters) - Deutsche Bank's (DE:DBKGn) links to the world's largest lenders make it a bigger potential risk to the wider financial system than any other global bank, the International Monetary Fund (IMF) said on Thursday.

The IMF compared possible threats to financial stability stemming from globally systemically important banks, known as "G-SIBs", in a review of Germany's banking and insurance sector.

"Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC (L:HSBA) and Credit Suisse (S:CSGN)," the fund said.

Global regulators have tried to make such banks more robust following the financial crisis to limit the impact of a bank collapse such as the implosion of U.S. firm Lehman Brothers.

"The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures," the IMF said, adding it was also important to quickly put in place measures for winding down troubled banks.

Germany's largest lender declined to comment on the report.

© Reuters. The headquarters of Germany's Deutsche Bank are photographed early evening in Frankfurt

Its shares fell by nearly 5 percent earlier on Thursday after the U.S. Federal Reserve said it was one of only two lenders to have failed an annual test of financial resilience in hypothetical stress scenarios.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.