The Chancellor of Germany, Olaf Scholz, assured this Friday (24) that “there is no reason to worry” with the situation of Deutsche Bank, whose shares fell today more than 14% on the Frankfurt Stock Exchange.
“It’s a very profitable bank. There’s no reason to worry,” Scholz said at the end of the summit that European leaders concluded in Brussels, where they analyzed the situation in the financial markets.
Deutsche Bank shares plummeted after the bank announced it plans to redeem $1.5 billion in subordinated debt on May 24, before it matures in 2028.
The bank assured that it has “all the necessary regulatory approvals” for this decision, but it had a profound impact on the banking sector, which went into the red after the news was released.
Deutsche Bank has specified that it will repay the bonds at 100% of their face value “with accrued interest until the amortization date”.
In this sense, the German chancellor assured that, in general terms, “the European banking system is robust and stable and we have the necessary supervisory structures”.
“You can clearly say that in recent years we have stricter rules,” added Scholz, who applauded the latest decisions taken by the president of the European Central Bank to deal with the financial turmoil and fight inflation.
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