Deutsche Bank

Central banks and regulators had hoped that the Credit Suisse rescue deal would help calm investor jitters about the stability of Europe's banks.

and Europe, it is just how far regulators will always go to ensure depositors are protected," the note said. [underwent a multibillion-euro restructure](https://www.cnbc.com/2019/07/05/deutsche-bank-eyes-huge-multi-billion-euro-restructuring-drive.html) in recent years aimed at reducing costs and improving profitability. Credit Suisse's collapse boiled down to a combination of three causes, according to JPMorgan. relative value)," Autonomous strategists Stuart Graham and Leona Li said in a research note. These figures would not indicate that there is any cause for concern about the bank's solvency or liquidity position. Federal Reserve](https://www.cnbc.com/federal-reserve/) on Wednesday. JPMorgan was unable to determine whether the unprecedented depositor outflows suffered by the Swiss bank had been amassed by themselves in light of SVB's failure, or had been driven by a fear of those outflows and "lack of conviction in management's assurances." These were a "string of governance failures that had eroded confidence in management's abilities," a challenging market backdrop that hampered the bank's restructuring plan, and the market's "fresh and intense focus on liquidity risk" in the wake of the SVB collapse. At the time of SVB's collapse, Credit Suisse was already in the spotlight over its liquidity position and had suffered massive outflows in the fourth quarter of 2022 that had yet to reverse. The lender [recorded annual net income of 5 billion euros ($5.4 billion) in 2022](https://www.cnbc.com/2023/02/02/deutsche-bank-smashes-profit-expectations-in-fourth-quarter-as-higher-interest-rates-bolster-revenue.html), up 159% from the previous year. [emergency rescue](https://www.cnbc.com/2023/03/20/what-ubs-rescue-of-credit-suisse-cs-means-for-markets-and-banks.html) of [Credit Suisse](https://www.cnbc.com/quotes/CSG.N-CH/) by [UBS](https://www.cnbc.com/quotes/0R3T-GB/), in the wake of the collapse of [U.S.-based Silicon Valley Bank](https://www.cnbc.com/2023/03/13/hsbc-buys-silicon-valley-bank-uk-protecting-deposits-.html), has triggered contagion concern among investors, which was deepened by further monetary policy tightening from the [U.S. [wipe out 16 billion Swiss francs ($17.4 billion) of Credit Suisse's additional tier-one (AT1) bonds,](https://www.cnbc.com/2023/03/21/credit-suisse-bondholders-prepare-lawsuit-after-at1-bond-writedown-in-ubs-deal.html) left the market unconvinced that the deal would be sufficient to contain the stresses in the sector.

Shares of Germany's largest bank Deutsche Bank slid on Friday as investors fretted that regulators and central banks have yet to contain the worst shock to ...

The index of top European bank shares [(.SX7P)](https://www.reuters.com/quote/.SX7P) ended down 3.8%. A spokesperson for UniCredit declined to comment. [(JPM.N)](https://www.reuters.com/companies/JPM.N) ended down 1.5%, while Bank of America [(BAC.N)](https://www.reuters.com/companies/BAC.N) climbed 0.6%. "It takes time. The meeting was chaired by U.S. regulators - agreed at a Friday meeting that the U.S. Treasury said the Financial Stability Oversight Council - which comprises the heads of various U.S. In the latest effort to reassure investors, the U.S. [(CRDI.MI)](https://www.reuters.com/companies/CRDI.MI) is leaning towards [repaying a perpetual bond](/markets/rates-bonds/unicredit-leaning-towards-repaying-at1-bond-june-source-2023-03-24/) at the earliest opportunity in June, a source close to the matter told Reuters. [(.SPLRCBNKS)](https://www.reuters.com/quote/.SPLRCBNKS) recovered 1.75%, with PacWest Bancorp rallying more than 3% and First Republic Bank [(FRC.N)](https://www.reuters.com/companies/FRC.N) falling 1.4%. [(DBKGn.DE)](https://www.reuters.com/companies/DBKGn.DE) was thrust into the investor spotlight and [slumped](/markets/deutsche-bank-shares-whipsaw-after-cds-blow-out-2023-03-24/) 8.5% alongside a sharp jump in the cost of [insuring](/markets/deutsche-bank-shares-whipsaw-after-cds-blow-out-2023-03-24/) its bonds against the risk of default. [(SBNY.O)](https://www.reuters.com/companies/SBNY.O) earlier this month.

Tumbling stocks dragged down other major banks across Europe, fuelling fears about a banking sector crisis.

Deutsche Bank said on Friday that it would redeem $1.5bn in tier 2 bonds early. 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. Last year, it booked its highest annual profit since 2007. 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. Speaking in Brussels after a summit of EU leaders, he also said the European banking system was “stable” with strict rules and regulations. Shares in Deutsche Bank have fallen sharply, dragging down other major European banks and reigniting fears about a widening banking sector crisis.

EUROPEAN banking stocks fell sharply on Friday, with Deutsche Bank and UBS knocked by worries that actions by regulators and central banks have not yet ...

The rescue of Credit Suisse has also ignited broader worries about investors' exposure to a fragile banking sector. "I think it had very profound implications for the regulation of banks, and for the way that banks manage themselves," Winters told a financial forum in Hong Kong. Swiss authorities and UBS are racing to close the takeover within as little as a month, according to two sources with knowledge of the plans. "Deutsche Bank has been in the spotlight for a while now, in a similar way to how Credit Suisse had been," said Stuart Cole, head macro economist at Equiti Capital. Shares in Germany's largest bank have lost a fifth of their value so far this month and the cost of its 5-year credit default swaps (CDS) - a form of insurance for bondholders - jumped to a four-year high on Friday, based on data from S&P Market Intelligence. EUROPEAN banking stocks fell sharply on Friday, with Deutsche Bank and UBS knocked by worries that actions by regulators and central banks have not yet contained the worst problems to face the sector since the 2008 global financial crisis.

How serious are the difficulties facing the German lender? | Finance & economics.

Yet the main reason for the sell-off is not a dreaded skeleton in Deutsche Bank’s closet. The market for Deutsche Bank’s credit-default swaps is illiquid, meaning a few trades can move prices fast. Deutsche Bank’s net profits of €5.7bn ($6.1bn) in 2022 were double those of the year before. And at1s count for a higher share of Deutsche Bank’s risk-weighted assets than at other banks. Deutsche Bank may have a large book of derivatives, which are dangerous instruments in volatile markets, but these are traded openly and often enough to make it unlikely they are severely mispriced. By contrast, after a prolonged and painful restructuring, Deutsche Bank is profitable.

Deutsche Bank shares fell 13% on Friday after a spike in credit default swaps on Thursday night, as concerns about the stability of Europe's banks ...

[European Central Bank](https://www.cnbc.com/european-central-bank/) President Christine Lagarde told EU leaders the euro area banking sector was resilient due to strong capital, liquidity positions and post-2008 reforms. The German lender's Frankfurt-listed shares retreated for a third consecutive day and have now lost more than a fifth of their value so far this month. The lender recorded annual net income of 5 billion euros ($5.4 billion) in 2022, up 159% from the previous year. These figures would not indicate that there is any cause for concern about the bank's solvency or liquidity position. [Deutsche Bank has reported 10 straight quarters of profit](https://www.cnbc.com/2023/02/02/deutsche-bank-smashes-profit-expectations-in-fourth-quarter-as-higher-interest-rates-bolster-revenue.html), after completing a multibillion euro restructure that began in 2019, with the aim of reducing costs and improving profitability. Federal Reserve](https://www.cnbc.com/federal-reserve/) on Wednesday.

What Deutsche Bank should be doing right now is disclosing its current liquidity and capital ratios. No one had banking chaos on their bingo card at the end ...

Banks Credit Exposure to Deutsche Bank Now](http://bit.ly/2f4P6tH) [Basel III Pillar III Risk Disclosures](https://investor-relations.db.com/files/documents/regulatory-reporting/Pillar-3-Report-Q4-2022.pdf), as of the end of December 2022, Deutsche Bank’s Liquidity Coverage Ratio was 135%, higher than the minimum requirement of 100%. That certainly would give market participants a good idea of how the bank stands. What Deutsche Bank should be doing right now is disclosing granular information about its current liquidity levels, sources of funding, and capital ratios. Yet, when you look at the stock over a much longer period of time, investors have been showing their discontent with the beleaguered bank for over a decade. It appears to be less liquid than Barclays, UBS, Société Générale, Credit Suisse, or HSBC Stable sources of funding are always important, especially right now. By the time, market participants get this information, it is already old. Nothing new, in particular, came out about Deutsche Bank today. Every time that there have been scandals about Deutsche Bank’s poor risk management, the stock falls, but eventually investors seem to just shrug their shoulders and move on. They pummeled Deutsche Bank’s stocks and bonds. And the price for protection against a Deutsche Bank’s bond default rose significantly as evidenced in the credit derivatives market.