• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Science
  • World
  • Lifestyle
  • Tech
Shares in Deutsche Bank drop as global banking worries persist

Shares in Deutsche Bank drop as global banking worries persist

March 24, 2023
Serbian president turns to Russia amid rising tensions with Kosovo after monastery gun battle

Serbian president turns to Russia amid rising tensions with Kosovo after monastery gun battle

September 25, 2023
Germany expected to scrap plan for tougher building rules

Germany to scrap plan for tougher building rules

September 25, 2023
macOS Sonoma review: Some new features, some old bugs

macOS Sonoma review: Some new features, some old bugs

September 25, 2023
Florida Just Banned ‘Gas Station Heroin’

Florida Just Banned ‘Gas Station Heroin’

September 25, 2023
Sen. Bob Menendez pulls Cuba card, says piles of cash feds found from his savings

Sen. Bob Menendez pulls Cuba card, says piles of cash feds found from his savings

September 25, 2023
Gavin Newsom-Ron DeSantis Debate Set For November 30; Sean Hannity To Moderate Fox News Event At Georgia Location

Gavin Newsom-Ron DeSantis Debate Set For November 30; Sean Hannity To Moderate Fox News Event At Georgia Location

September 25, 2023
Sen. Bob Menendez indicates he will not resign after indictment on bribery charges

Sen. Bob Menendez indicates he will not resign after indictment on bribery charges

September 25, 2023
Biden administration announces $1.4 billion to improve rail safety and boost capacity

Biden administration announces $1.4 billion to improve rail safety and boost capacity

September 25, 2023
Russia’s Baltic Fleet ‘No Longer Capable of Amphibious Assault’: Report

Russia’s Baltic Fleet ‘No Longer Capable of Amphibious Assault’: Report

September 25, 2023
Marina Abramovic Relents and Adapts a Provocative Piece for Today

Marina Abramovic Relents and Adapts a Provocative Piece for Today

September 25, 2023
Time Stands Still in Serge Gainsbourg’s Paris Lair

Time Stands Still in Serge Gainsbourg’s Paris Lair

September 25, 2023
Gymnastics Ireland ‘deeply sorry’ to Black girl ignored at medal ceremony

Gymnastics Ireland ‘deeply sorry’ to Black girl ignored at medal ceremony

September 25, 2023
DNYUZ
  • Home
  • News
    • U.S.
    • World
    • Politics
    • Opinion
    • Business
    • Crime
    • Education
    • Environment
    • Science
  • Entertainment
    • Culture
    • Music
    • Movie
    • Television
    • Theater
    • Gaming
    • Sports
  • Tech
    • Apps
    • Autos
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Arts
    • Fashion
    • Food
    • Health
    • Travel
No Result
View All Result
DNYUZ
No Result
View All Result
Home News Business Economy

Shares in Deutsche Bank drop as global banking worries persist

March 24, 2023
in Economy, News
Shares in Deutsche Bank drop as global banking worries persist
683
SHARES
2k
VIEWS
Share on FacebookShare on Twitter

Shares in Deutsche Bank have fallen sharply, dragging down other major European banks and reigniting fears about a widening banking sector crisis.

Germany’s biggest lender dropped more than 14 percent on the Frankfurt Stock Exchange in Friday morning trading before clawing back ground in the afternoon to trade 9.5 percent lower, at 8.43 euros ($9.07) a share.

Tumbling bank stocks dragged down markets across Europe on Friday with Germany’s Commerzbank down 7.5 percent, France’s Societe Generale off 5.9 percent and Austria’s Raiffaisen down 5.9 percent.

Deutsche Bank is one of 30 banks considered globally significant financial institutions, so international rules require it to hold higher levels of capital reserves because its failure could cause widespread losses.

The long-troubled bank has become the focus of investor concerns after the collapse of three regional US lenders and the Swiss government-brokered takeover of Credit Suisse by rival UBS triggered market turmoil this month.

The cost of insuring the bank’s debt against a risk of defaulting, known as credit default swaps, has surged as investors fret about the banking sector’s health.

Rising costs on insuring debt were a prelude to Credit Suisse‘s rescue by UBS. That hastily arranged takeover on Sunday and jitters about Credit Suisse’s long-running troubles led its shares to tank and customers to pull out their money.

Asked whether Deutsche Bank could be the next Credit Suisse, German Chancellor Olaf Scholz said, “There is no reason to be concerned.”

Scholz expressed confidence in Deutsche Bank, saying it had “modernised and organised the way it works. It’s a very profitable bank.”

Speaking in Brussels after a summit of EU leaders, he also said the European banking system was “stable” with strict rules and regulations.

Deutsche Bank said on Friday that it would redeem $1.5bn in tier 2 bonds early. Such a move is normally aimed at boosting confidence in a bank although its shares plunged regardless.

The bank was hit by a string of problems linked to its attempts before the 2008 global financial crisis to compete with Wall Street investment banking giants.

But it launched a major restructuring, which involved thousands of job cuts and a greater focus on Europe, and has returned to financial health. Last year, it booked its highest annual profit since 2007.

European officials said banks in the European Union’s regulatory system, which does not include Credit Suisse, are resilient and have no direct exposure to the failed California-based Silicon Valley Bank and little to Credit Suisse.

Efforts to strengthen banking regulation in recent years “puts us all in a position to say that European banking supervision and the financial system are robust and stable and that we have resilient capitalisation of European banks”, Scholz said.

European leaders, who played down any risk of a possible banking crisis at their summit on Friday, said the financial system is in good shape because they require broad adherence to tougher requirements to keep ready cash on hand to cover deposits.

International negotiators agreed to those rules after the 2008 financial crisis, triggered by the failure of US investment bank Lehman Brothers. US regulators exempted midsized banks, including Silicon Valley Bank, from those safeguards.

The post Shares in Deutsche Bank drop as global banking worries persist appeared first on Al Jazeera.

Share273Tweet171Share

Trending Posts

Lions’ Sam LaPorta makes NFL history in win over Falcons

Lions’ Sam LaPorta makes NFL history in win over Falcons

September 25, 2023
An elite 12-member Ukrainian drone squad made up of ex-businessmen and filmmakers have already destroyed $80 million worth of Russian military equipment

An elite 12-member Ukrainian drone squad made up of ex-businessmen and filmmakers have already destroyed $80 million worth of Russian military equipment

September 25, 2023
America’s Budget Dysfunction Has Geopolitical Costs

America’s Budget Dysfunction Has Geopolitical Costs

September 25, 2023
Anti-Covid drug may have led to virus mutations: study

Anti-Covid drug may have led to virus mutations: study

September 25, 2023
Hollywood’s Focus Turns to Actors After Writers Agree to Deal

Hollywood’s Focus Turns to Actors After Writers Agree to Deal

September 25, 2023
In Alabama, White Tide Rushes On

In Alabama, White Tide Rushes On

August 22, 2023

Copyright © 2023.

Site Navigation

  • About
  • Advertise
  • Privacy & Policy
  • Contact

Follow Us

No Result
View All Result
  • Home
  • News
    • U.S.
    • World
    • Politics
    • Opinion
    • Business
    • Crime
    • Education
    • Environment
    • Science
  • Entertainment
    • Culture
    • Gaming
    • Music
    • Movie
    • Sports
    • Television
    • Theater
  • Tech
    • Apps
    • Autos
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Arts
    • Fashion
    • Food
    • Health
    • Travel

Copyright © 2023.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT