Ein “no comment” by Federal Chancellor Olaf Scholz would probably not have calmed things down either. The fact that Scholz at the EU summit – when asked about Deutsche Bank – said that there was “no cause for concern” seems like a whistle in the woods. At the end of a very turbulent week on the financial markets, Deutsche Bank has again come into focus – although it apparently has nothing to do with the bank tremor in the USA or with the forced marriage of the two major banks Credit Suisse and UBS.
In doing so, she is troubled by her own past, after all, in the crises of recent years, she has repeatedly exhibited behavioral problems. The current board of directors has turned the rudder of the disastrous corporate culture, but the crises are still having an impact. However, Deutsche Bank is also being punished on behalf of the entire banking sector, which is closely linked to interest rate risks.
The banks had long begged that the central banks would finally raise interest rates after these years of drought. This is happening now. However, the rate of interest rate increases is high and can severely disrupt the balance of banking business.
The news about the weakening commercial real estate market in the USA is also making investors nervous. Deutsche Bank is very active in this area. Deutsche Bank will now have to prove how stable its business basis really is.
Chancellor Olaf Scholz said at the EU summit that the bank’s business model had been fundamentally modernized, reorganized and “is very profitable”. The proof of the half-life of these statements is still pending.