Washington (Reuters) – The International monetary Fund (IMF) has recommended to the crisis-stricken German Bank, to your investors a “viable business model”.
In an environment of weak banking systems in Europe belong to the German Bank to those houses, situated in the middle of the transformation process of a former investment Bank to new business models, said Peter Dattels, Deputy IMF managing Director for capital markets. The banks would have to set the total in an Era of chronically weak growth, persistently low interest rates and political uncertainties.
The Deutsche Bank is advised in the stock market in a downward spiral after the US Department of justice had demanded the sum of $ 14 billion in connection with the Offense when dealing with mortgage papers. Many investors had sold their shares in the Bank, the share price went on a rollercoaster ride. The Bank hopes to be able to total significantly to the bottom correct.
On the question of whether the U.S. justice Department handled the case of his claims against European banks with irresponsible amounts, said the IMF experts, reserved. The European banking sector must “conduct a significant failure and irresponsibility can be accused of,” said IMF financial expert Matthew Jones.
The IMF has a bleak picture of the European banking scene is characterized, in its report on financial market stability as a whole. A large part of the European banks was too weak to be able to have sustainable profits. A third of the European banking system with a volume of 8.5 trillion dollars was affected, said the IMF banking expert Peter Dattels. “A part of the system has to shrink.”
In its fiscal monitor, the IMF also pointed to since the beginning of the financial crisis, accumulated, and still have not been dismantled, high debt burden of private and public households. Banks are disregarded, the blame for the world with 152 trillion dollars, equivalent to 252 percent of the world’s economic output. Of these, two thirds are attributable to private households. The world economy was in a vicious circle: High levels of debt inhibit growth, weak growth, inhibits the reduction of debt.