The International monetary Fund (IMF) in its report on financial stability a gloomy picture of the European banking scene. A third of the European banks was too weak to be able to have sustainable profits.
About 30 percent 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 must shrink.”
Deutsche Bank criticism
in particular, the recent headlines, the troubled German Bank is faced with the challenge of having to convince investors that your business model is viable, so Dattels.
“Deutsche Bank is one of the banks, the need to continue to make adjustments, in order to convince investors that your business model for the future is to be viable,” said the IMF money and capital market expert. In addition, investors need to be convinced that Germany’s largest money house have its risks arising from various litigation in the handle.
For German-Bank-chief John Cryan come the words at a critical time: The low-yield Institute is currently in the middle in the negotiation poker with the US authorities, a 14-billion-avert-Dollar penalty in the dispute over rotten mortgage-backed securities.
“the most Dangerous Bank in the world”
The topic is likely to stand at the autumn meeting of the IMF in Washington in the center. There at the end of the week, gathering numerous high-profile bankers, Central bankers, and politicians, to discuss, among other things, on the situation in the financial markets. Cryan is.
The German Bank from the IMF as the most dangerous Bank in the world considered to have withdrawn from the investors last solid trust: The Deutsche Bank share crashed a few days ago to a new record low of 9,90 Euro. First major customers such as American Hedge funds from withdrawing funds. Some people feel already to the period prior to the financial crisis in 2007, recalls.
The German Bank itself argues that they have enough liquidity, a large capital ceiling, and had been in terms of balance sheet risks, never so safe as it is today. But as long as the mortgage dispute is not resolved, the uncertainty, the Institute really is. Because there are many other legal disputes, which can cost a lot of money still smolder.
ECB: “The System is solid”
the low interest rates that eat up all the European banks deeply in the balance sheet. The IMF in its report on global financial stability: The General current weakness of the local institutions in an environment of low interest rates and low economic growth could erode the capital buffer with the time, it said. Added to bad loans in the total volume of an estimated EUR 900 billion.
The European Central Bank (ECB) as supervisor for the major banks on the continent in a defensive position. “There are individual cases of banks with problems, but the System is solid,” said ECB-Bank guard Ignazio Angeloni in Milan. The conditions for a systemic crisis were not given.
Blackrock: “It is frustrating,”
the Largest Investor of Deutsche Bank, the US Fund giant Blackrock is next to the Emirate of Qatar. Its Vice-chief, Philipp Hildebrand, appeared in the “Frankfurter Allgemeine Zeitung” to the word and campaigned there, unusually open to mergers among Europe’s major banks, and a cross-border basis. “When we speak of need a Consolidation, then we should not do that in the national framework,” he said. The policy would need to send, but finally clear signals.
Also criticized Hildebrand, many European banks would know how to earn sustainable money. Of the Blackrock Manager’s practiced fundamental criticism of the state of the industry: “It is frustrating that in a number of large European banks, despite all the rhetoric, is still not clear enough is the recognition that a radical reorientation of the business model is necessary.”
The Institute respond, but currently, especially with the reduction in staff. According to Figures from the data provider Bloomberg nearly 40,000 jobs in the sector. The weak yields, negative interest rates and stricter regulations are a burden on the profits of financial corporations.
Banker expects financial collapse
The banks-expert Oswald Grübel warns of a Crash in the financial markets. Due to the low interest rate policy of the Central banks. “Economically zero interest rates don’t make any sense,” he said to the “Manager Magazin”.
The population will at some point lose confidence in currencies and Central banks, Grübel, who was once head of the Swiss big banks, UBS and Credit Suisse. As a result, interest rates would rise rapidly, institutional investors, your bonds go, but no customers, because banks ‘ requirements, as the buyer, failed because of equity -.
Gold and real estate as a crisis of protection
Grübel advises investors to increase Gold’s share in their Portfolios to 30 percent. “Actually, the only markets not manipulated by the Central banks,” says the 72-Year-old work. Real estate looks Grübel as a attractive Crisis.