“It is a very profitable bank and has extensively modernized its investment model”
Photo: ASSOCIATED PRESS
“Deutsche Bank is a very profitable bank and there is no reason to worry about its future,” said German Chancellor Olaf Scholz, hours after the “plunge” in Deutsche Bank's stock.
According to Scholz, Deutsche Bank has “extensively modernized its investment model” and is a bank that does not give any cause for concern. plunged more than 11% after a jump in the cost of insuring its bonds against the risk of default.
Its shares have lost a fifth of their value since the start of the month, and its CDSs (premiums against the risk of default) posted their biggest daily increase on record yesterday, according to data from Refinitiv.
At the same time, shares in the international markets were under pressure while the shift of investors to the so-called safe havens offered support to government bonds.
For her part, the president of the European Central Bank (ECB), Christine Lagarde reassured today of the stability of the eurozone banking system to EU leaders meeting in Brussels, as fears of a new financial crisis sent markets tumbling today.
“The eurozone banking sector it is resilient because it has stable positions in terms of capital and liquidity,” Lagarde said to the heads of state and government of the European Union, according to a European official.
With information from Reuters and APE-MPE
