Bank Crisis 2023: The banking crisis that started with the bankruptcy of America’s Silicon Valley Bank is now gradually engulfing the banking system of the whole world. After the sinking of Silicon Valley Bank, America’s Signature Bank, Credit Suisse Bank of Switzerland are also seen to be in trouble. Now this banking crisis seems to be reaching Germany. The financial condition of Germany’s largest bank Deutsche Bank has also worsened.
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Significantly, on Friday, a huge decline of about 8 percent has been recorded in the stock price of Deutsche Bank. There is an atmosphere of uncertainty among investors regarding the banking system. In such a situation, tremendous selling has been seen in the shares of Deutsche Bank on Friday. At the same time, in the last one month, there has been a huge decline of 24 percent in the shares of Germany’s largest bank. According to The Spectator Index, this German bank has total assets of $1.4 trillion. At the same time, the bank had a total profit of $ 6 billion in the year 2022.
Deutsche Bank
– Germany’s biggest bank with around $1.4 trillion in assets
– $880 billion in assets under management
– $6 billion profit in 2022
– Designated as a systemically important financial institution
– Stock-price down 8% today, down 24% in the past month
— The Spectator Index (@spectatorindex) March 24, 2023
Shares of Deutsche Bank fell by more than 15 percent on Friday. After this, there was some improvement in the shares and it closed at 8.54 euros with a total decline of 8 percent. It is worth noting that the decline in the bank’s shares is not only due to the huge pressure on global banks, but the cost of credit-default swap insurance of the bank has increased manifold as compared to the year 2020. In such a situation, distrust has arisen among the shareholders of the bank and the selling of shares has intensified. Credit-default swap insurance is a type of insurance that banks provide to a company or brand in lieu of default.
Deutsche Bank is the largest bank in Germany
Amid reports of the Deutsche Bank crisis, Germany’s Chancellor Olaf Scholz has said that Europe’s banking system is completely safe and investors need not panic. Actually, Deutsche Bank is the largest bank in Germany. It has an important role in the country’s economy. It works in Germany as well as in many other countries. Deutsche Bank is considered one of the safest banks in the world. This bank usually offers the largest number of corporate loans. The total assets of the bank have been estimated at $1.4 trillion. In such a situation, if there is any kind of crisis on this bank, then it can engulf the whole of Europe.
Clouds of trouble over the banking sector
Before Germany’s Deutsche Bank got into trouble, the news of the sinking of America’s Silicon Valley Bank and Signature Bank had created a stir in the entire banking sector. This banking crisis, which started from America, then reached Europe when the news of the sinking of Credit Suisse Bank of Switzerland came. Since then, the confidence of customers and investors in banks around the world has decreased.
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