According to the Fund, the range of large banks can provoke instability, Hubs reports.
The largest private bank of Germany— Deutsche Bank — bears significant risks for the global financial system, - according to the analysts of the International Monetary Fund (IMF), publishing the regular report “Financial System Stability Assessment”.
As it is emphasized in the materials of the report, among the global systemically important banks (G-SIBs) Deutsche Bank strengthens systemic risks most of all. The large financial institutions such as HSBC and Credit Suisse rank next.
It is also defined in IMF analysts’ material that today the significant position of Deutsche Bank in the system is strengthened by the need in risk management, intensive supervision and monitoring of transborder risks.
The Fund states that the most significant threats of secondary effects occur during the occurrence of problems in German, French, British and US banking systems.
“In particular, FRG, France, UK and USA have the highest level of external secondary effects as per criteria of average value of the capital loss by other banking systems during the shock of the banking sector in source country”, as it is said in the text of the document.
Previously the influential financial expert George Soros predicted the devaluation of the British pound after the country’s decision to withdraw from EU. In his opinion, Brexit will directly affect “financial markets, price investments and labour market”.
