2023-04-17 15:31:49
The head of the German Federation of Banks, Christian Sewing, stressed that the risks of a “full-scale” banking crisis in Europe are “very low” despite the recent tensions in the sector since the bankruptcy of the Silicon Valley bank (SVB) in the United States and the takeover of “Credit Suisse”. .
“The risk of a comprehensive crisis similar to that of 2008 is very low,” said Seving, who is also CEO of Deutsche Bank, Germany’s largest bank, during a press conference. He explained that the banks in Germany and in the European Union are still very solid “and” are well provided with capital and liquidity.
The recent collapse of Silicon Valley Bank, which is linked to the emerging companies sector, and Signature Bank in the United States, and soon after that urgent acquisition of Credit Suisse, raised fears of a broader crisis in the banking sector.
European financial institutions, especially Deutsche Bank, suffered in the stock exchanges after that, with investors fearing a repeat of these events in Europe. Seving explained that the crisis “did not have any impact on the position of banks in Europe.”
Christian Saving pointed out that this is because “the regulators have done a good job of improving bank capital significantly since the 2008 crisis.”
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