« President of the German Banking Association: The risk of a comprehensive banking crisis in Europe is very low »

Deutsche Bank.. the risk of a comprehensive banking crisis is « very low »

Christian Seving, President of the German Federation of Banks and CEO of Deutsche Bank, stressed that the risks of a comprehensive banking crisis in Europe are considered very low, despite the recent tensions in the banking sector due to the bankruptcy of the Silicon Valley Bank in the United States and the acquisition of Credit Suisse.

Seving added, during a press conference, that banks in Germany and in the European Union are still very solid, well-capitalized and liquid, and therefore there is no reason to worry about a comprehensive banking crisis similar to the one that occurred in 2008.

Since the collapse of “Silicon Valley Bank” and “Signature Bank” in the United States, and the urgent acquisition of “Credit Suisse”, there have been fears of a wider banking crisis in the banking sector, and European financial institutions, especially Deutsche Bank, have been affected in the stock exchanges as a result. .

However, according to Siving, the crisis has not affected the position of banks in Europe, due to the good work that the regulators have done in improving bank capital significantly since the 2008 crisis.

In the end, it can be said that Seving’s statements confirm that the banking sector in Europe enjoys stability and the ability to deal with the various challenges it faces, which constitutes a strong guarantee for the economy.