Bloomberg News reports that Deutsche Bank “appears to be the most important net contributor to systemic risks” among global systemically important banks, or G-SIBs, the IMF said in a report Wednesday. HSBC and Credit Suisse are next in the ranking, according to the IMF.
Global regulators have sought to avoid a repeat of the taxpayer-funded bank bailouts of the 2008 financial crisis by holding lenders to stricter capital requirements that encourage them to become smaller and less complex. Concern over Deutsche Bank’s financial strength has weighed on the company’s stock and make it the worst-valued global lender.
“The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime,” the IMF said in the report.
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