Deutsche Bank can breathe a sigh of relief after US stress test | Economy | '
Deutsche Bank has passed the second part of the annual US stress test. This was reported by the Federal Reserve (Fed), the central bank of the United States. This is a great success for the Frankfurt Institute. For in recent years, it had failed with its daughter DB USA three times in the test.
In 2018, the financial supervisors of the Deutsche Bank still had "significant weaknesses" attested. In the Fed's assessment at the time, there was talk of "widespread and significant shortcomings" in capital planning. For the banks, the judgment of the supervisors is important, because much depends on it: for the US institutions are about planned dividends and share repurchases, for the subsidiaries of foreign financial institutions – such as Deutsche Bank – for profit distributions to their group mothers.
"Solid" mastered round one
The first round of the Fed stress test last week, the Deutsche Bank had already passed without difficulty. This section deals with capitalization, which the Fed examines using simulated crisis scenarios. All 18 participating financial firms certified that the central bank is solidly positioned. The second part focuses on internal controls and risk management – here, for years, Deutsche Bank has had weaknesses.
On Park Avenue – where many super-rich people live – Deutsche Bank also has a seat in New York
After numerous proceedings and investigations into alleged violations of the rules, the US has long been the scene of a major legal construction site for the Frankfurt Institute. In the past, Deutsche Bank paid billions of dollars in penalties there and received various conditions in the context of comparisons with US authorities. Just last week, the New York Times reported on new US judicial investigations into possible anti-money laundering laws.
In response to the financial crisis, the Fed's stress tests launched in 2009 are designed to ensure that lending in a financial market crash does not abruptly stop and banks do not have to be rescued with tax money. However, the methodology of these checks has changed significantly in recent years.
jj / haz (dpa, afp)
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