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IMF Says Deutsche Bank Poses Greatest Systemic Risk
Amisha Mehta
1 July 2016
Of all the globally systemically important banks, said in its Financial Sector Assessment Program: “Among the G-SIBs (globally systemically important banks), Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse. “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,” it added. The IMF highlighted the key role that Germany’s financial sector plays in the global economy. It noted the country, home to Deutsche Bank, Allianz and Commerzbank, has the third largest asset management industry in the European Union, while its sovereign bond market is a safe haven and benchmark for fixed income instruments globally. The report came shortly after the US Federal Reserve revealed Deutsche Bank Trust Corporation, which consists of Deutsche's US transaction bank and wealth management business, and Banco Santander's US bank subsidiary once again failed the Fed's annual “stress test”. In afternoon London trading, Deutsche Bank shares were down 3.55 per cent.