In the report the IMF “Programme of financial sector assessment report says that among the global systemically important banks (GSIBs), Deutsche Bank brings the greatest risks for the global financial system. After the German Bank systemic risk are HSBC and Credit Suisse.
In addition, the IMF notes that the negative external effect of possible shocks in the German banking system will be higher than the effect inside the country. This is the same situation with the banking systems of France, great Britain and the United States. “In particular, Germany, France, the US and the UK represent the greatest risks on the external side the results which are measured in percentage loss of capital in other banking systems because of the Bank shocks in these countries,” the report said.
Representatives of Deutsche Bank have not commented on the IMF statement.
The IMF report came against the background of the failure of the U.S. unit of Deutsche Bank stress tests the Federal reserve system of the United States. Of the 33 banks that received stress tests, lost only two: in addition to Deutsche Bank Santander is Spanish. The fed notes that the tests were failed due to “extensive and significant deficiencies in capital planning processes”. The fed noted that, despite the fact that both banks after last year’s failure of the stress tests have shown improvement and have adequate capital, the planning of these banks is still based on assumptions and analysis that are not appropriate and reasonable”.
The Deutsche Bank has significantly lost in value after the decision on the referendum in the UK on the country’s withdrawal from the European Union. The prices of these shares declined to the lowest level since 1988 (the date of Foundation of the German stock index DAX). Billionaire George Soros immediately after Brexit took a short position of 7 million shares (approximately 0.51% of share capital Deutsche Bank).